Signature Bank is the next bank to be closed by Federal regulators. Regulators closed the crypto-focused bank, citing systemic risk.

Stablecoin issuer Circle Internet Financial said Monday the US$3.3 billion in USD Coin (USDC) reserve deposits held at the failed Silicon Valley Bank will be fully recovered when banks open on Monday in the U.S., reflecting a statement from financial authorities. The US$3.3 billion accounts for about 8% of the total USDC reserve, Circle said in a statement, adding that it held no cash reserves at Signature Bank, which was also taken over at the weekend by the Federal Deposit Insurance Corporation. 

Singapore-based Techteryx, which issues TrueUSD, said Monday morning Asia time that minting and redemption is paused for its users with Signature Bank but continues unaffected across the rest of its banking network. The stablecoin issuer disclosed in a December report that it splits its holdings across a variety of depository institutions in the U.S., Hong Kong and the Bahamas. TrueUSD has a market cap of just over $2 billion. Data from Nansen.ai shows that Binance is the exchange with the largest holdings of TrueUSD at $428 million.

U.S. regulators closed New York-based Signature Bank, one of the biggest lenders in the crypto industry, due to risks of a systemic bank failure, the U.S. Treasury Department, Federal Reserve, and Federal Deposit Insurance Corporation (FDIC) said in a joint statement. This follows the closure of Silicon Valley Bank last Friday, which is the largest U.S. bank failure since the collapses of Lehman Brothers and Washington Mutual during the 2008 financial crisis. 

Tether doesn't have any exposure to Signature Bank.

Hot on the heels of several United States bank collapses, the Federal Reserve has announced $25 billion worth of funding aimed at backstopping banks and other depository firms.

The New York Department of Financial Services seized crypto-friendly Signature Bank in order "to protect depositors," the state banking regulator said in a Sunday night announcement.

USDC nearly regained its peg and cryptocurrencies rallied on the news that all Silicon Valley Bank and Signature Bank deposits will be fully returned to customers.

Signature Bank (SBNY) shares fell as much as 30% in early trading on Friday as the reverberations of the Silvergate (SI) collapse spread throughout the banking sector.

Signature bank halted after dropping a record 22%, while 30% down in the past five days. Other banks also have been halted, including First Republic and SIVB.