Coinbase says it has about $240 million cash balance with Signature Bank

Cryptocurrency exchange Coinbase Global Inc has about $240 million in corporate cash balance with Signature Bank, it said in a tweet on Sunday, hours after the state regulators closed the New York-based lender.

"Due to FDIC's hold on Signature's transactions, we're currently facilitating all client cash transactions with other banking partners," the tweet added.



State regulators closed New York-based Signature Bank on Sunday, the third largest failure in US banking history, two days after authorities shuttered Silicon Valley Bank in a collapse that stranded billions in deposits.

The Federal Deposit Insurance Corporation (FDIC) took control of Signature, which had $110.36 billion in assets and $88.59 billion in deposits at the end of last year, according to New York state's Department of Financial Services.

All of the depositors of Signature Bank and Silicon Valley Bank will be made whole, and "no losses will be borne by the taxpayer," the US Treasury Department and other bank regulators said in a joint statement.

Employees appeared to gather at the company's Manhattan headquarters for meetings on Sunday, ordering catering from Carmine's, an Italian restaurant, and Starbucks coffee, according to a Reuters reporter on the scene. People trickled out of the building after the news of the closure was announced.

Representatives for the lender did not immediately respond to a request for comment.

Signature's failure followed Silicon Valley Bank's Friday shutdown, the second largest in U.S. history behind Washington Mutual, which collapsed during the 2008 financial crisis.

Signature was a commercial bank with private client offices in New York, Connecticut, California, Nevada and North Carolina, and had nine national business lines including commercial real estate and digital asset banking.

As of September, almost a quarter of its deposits came from the cryptocurrency sector, but the bank announced in December that it would shrink its crypto-related deposits by $8 billion.

Signature Bank announced in February that its chief executive officer, Joseph DePaolo, would transition into a senior adviser role in 2023 and would be succeeded by the bank's chief operating officer, Eric Howell. DePaolo has served as president and CEO since Signature's inception in 2001.