In just less than a week after the banks closure Flagstar Bank has acquired Signature Bank’s non-cryptocurrency-related deposits and loans in a purchase and assumption agreement.
The United States Federal Deposit Insurance Corporation (FDIC) has announced the agreement on March 19, which will see $38.4 billion worth of non-cryptocurrency-related deposits and $12.9 billion in loans taken over by Flagstar Bank
The caveat being that all crypto related deposits and loans are not going to be part of the deal. Signature Bank’s 40 branches will open and operate as Flagstar Bank from March 20th, and all deposits assumed by Flagstar Bank will continue to be insured up until the $250,000 insurance limit.
“Today, we entered into an agreement with a subsidiary of New York Community Bancorp, Inc, to purchase and assume deposits and assets out of Signature Bridge Bank”
What happens to the crypto assets your probably thinking! In the takeover deal from Flagstar Bank there were approximately $4 billion of deposits held by Signature Bank’s digital assets business. The FDIC confirmed that it will transfer these crypto deposits directly to customers who opened a digital banking accounts with Signature bank stating –
“The FDIC will provide these deposits directly to customers whose accounts are associated with the digital banking business.”
Coinbase along with Nexo and Paxos are some of the larger crypto players that are due to get there deposits back. The banks sale marks an amazing turn around in less than a week and gives hope to investors getting there funds back.
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