Coinbase Reveals $240M Exposure to Closed Signature Bank

• Paxos disclosed a $250 million holding at Signature Bank.
• Coinbase said that it anticipates a complete recovery of the monies.

Many cryptocurrency firms announced on Twitter if they were impacted by the government suspension of crypto-friendly Signature Bank, which emerged as the latest institution to fall after a spate of bank collapses late Sunday.

In yet another blow, the Federal Reserve, the United States Treasury, and the Federal Deposit Insurance Corporation (FDIC) all issued a joint statement saying that they had closed Signature Bank. Nevertheless, the three regulators announced that the bank will reopen on Monday and that all depositors at the New York City bank would be refunded.

According to the organization, Signature Bank was first closed and its top executives were removed by the state chartering body in New York. Companies’ Twitter postings in the days leading up to the failure of Silvergate Bank and later Silicon Valley Bank mirrored the public’s demand for transparency.

Confident of Funds Recovery

Paxos, a stablecoin producer, and cryptocurrency broker has disclosed a $250 million holding at Signature Bank. In addition to Paxos’s present balance with Signature Bank, the business said that it insures private accounts up to that amount.

Considering the exceptional efforts the government has taken to safeguard Signature Bank’s clients, Paxos has said that it expects the cash to be accessible on Monday, when the bank reopens. Moreover, Paxos denied any affiliation with Silicon Valley Bank, the second biggest financial institution failure in U.S. history, when news of its demise spread last Friday.

Meanwhile, the largest cryptocurrency exchange in the United States, Coinbase, reported having a corporate cash balance of almost $240 million at Signature Bank. The exchange said that it anticipates a complete recovery of the monies.

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