The U.S. Federal Deposit Insurance Corporation (FDIC), the current holder of the receivership of crypto-friendly Signature Bank, has announced that the collapsed bank's deposits and loans were sold to Flagstar Bank.
Signature Bank's crypto-related deposits were not included in the sale deal.
- Flagstar Bank is a subsidiary of New York Community Bancorp.
- The Michigan-based bank mainly took over Signature Bridge Bank, N.A.'s assets, including $38.4B of non-crypto-related deposits and $12.9B in loans.
- Nearly $4B of deposits held by Signature Bank's digital assets business account for 4.5% of the $88.59B in deposits the bank had as of Dec. 31, 2022.
- The FDIC will transfer crypto-related deposits directly to customers who opened a digital banking account.
- Signature Bank's 40 branches have begun operating again under the roof of Flagstar Bank as of March 20.
- The FDIC recently rejected the claims that it would require the purchaser of Signature Bank to leave the bank's crypto business, though the denial was followed by an opposite move.
- Signature Bank was shut down by the New York Department of Financial Services (NYDFS) on March 12, marking the third bank collapse within a week after Silvergate Bank and Silicon Valley Bank (SVB).
- Following the closure, the bank's crypto clients, including Paxos, Coinbase, Circle, and Celsius, announced funds in Signature Bank.
