Coinbase Confirms $240 Million Corporate Cash Balance with Signature Bank Amid Lender Closure
Major crypto exchange Coinbase stated that it has millions in corporate cash balance with the shuttered Signature Bank.
According to a March 13 Twitter thread, as of the close of business on Friday, March 10, Coinbase had "an approximately $240m balance in corporate cash" at Signature.
The company, however, tweeted that,
"As stated by the FDIC, we expect to fully recover these funds."
Regulators closed New York-based Signature on Sunday, two days after closing Silicon Valley Bank in a massive collapse affecting billions in deposits.
The Federal Deposit Insurance Corporation (FDIC) took control of Signature, which had $110.36 billion in assets and $88.59 in deposits at the end of 2022, per the New York state's Department of Financial Services data, Reuters reported.
Coinbase said that,
"All client cash at banks continues to be protected by FDIC pass-through insurance. Due to FDIC's hold on Signature’s transactions, we’re currently facilitating all client cash transactions with other banking partners."
It did not name these "other" partners.
Signature's was the third-largest failure in US banking history, Silicon Valley Bank's shutdown was the second, and the first was Washington Mutual, which collapsed during the 2008 financial crisis.
On March 12, a joint Statement by Secretary of the Treasury Janet Yellen, the Federal Reserve (Fed) Board Chair Jerome Powell, and FDIC Chairman Martin Gruenberg, said that the FDIC received approval to "complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors." Depositors will be able to access "all of their money starting Monday, March 13," while no losses associated with this move will be borne by the taxpayer.
It added that,
"We are
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