FDIC to sell Signature’s Signet network; remaining bank clients given cutoff date News ▸ US ▸ Bankruptcy
FDIC to sell Signature’s Signet network; remaining bank clients given cutoff date
Signature Bank's closure process continues weeks after its initial failure.
1 min read
Updated: Mar. 29, 2023 at 9:12 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The Federal Deposit Insurance Corp. (FDIC) aims to sell Signature Bank’s Signet payments network, according to a report from Bloomberg on March 28.
That plan has not been officially announced. Rather, Bloomberg’s report cites a spokesperson who confirmed that the FDIC intends to proceed with the sale.
Previously, on March 19, New York Community Bankcorp and its subsidiary, Flagstar Bank, acquired parts of Signature Bank from the FDIC. However, that acquisition did not extend to certain parts of the company including Signature’s Signet network.
Signet instead remained under the control of the FDIC, which originally took control of Signature Bank on March 13 following the collapse of competing banks.
Certain cryptocurrency companies, including Coinbase, relied on the Signet network at times. The network allowed for faster settlements than some traditional options.
The latest Bloomberg report also indicates that customers who remain with Signature Bank must close their accounts and transfer their money elsewhere by April 5. Customers who do not withdraw their funds by that date will receive a check with their balance.
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Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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Signature Bank
Signature Bank® (NASDAQ: SBNY) is a New York-based full-service commercial bank with private client offices throughout the New York Metropolitan area, Connecticut, North Carolina and California.
