Signature Bank was one of the two main banks providing financial services to crypto platforms. The bank was majorly invested in crypto, with over a quarter of all deposits coming from the industry. The news dealt a blow to many mainstays of the crypto industry, de-pegging Circle’s USDC and causing uncertainty for Coinbase and Paxos, who had significant assets stashed away at Signature Bank. U.S. authorities decided over the weekend to place Signature Bank in , informing its leadership mere hours before the public announcement was made.
Source: Jordan Lyanchev, 2023-03-18; https://cryptopotato.com/fdic-denies-that-potential-signature-buyers-must-give-up-crypto/