The impact of the closure of these banks highlights a key difficulty of operating a business within or adjacent to the crypto ecosystem: the difficulty of finding reliable banking partners.

Signature Bank is on the market after being shuttered by state regulators on Sunday, but any potential buyer reportedly has to agree to a major caveat: no crypto. Reuters first reported the development on Wednesday evening, citing sources familiar with the matter. The New York-based bank’s weekend closure came two days after the collapse of another bank, the California-based Silicon Valley Bank (SVB), and less than a week after the closure of another California-based bank, Silvergate Bank. All three of the now-defunct banks were known as being crypto-friendly financial institutions. (Coindesk)

Private equity firms circling the $74 billion loan book at Silicon Valley Bank may find that the Federal Deposit Insurance Corp. is unwilling to sell the assets — or at least not at bargain-basement prices. 

The FDIC has brought in the investment bank Piper Sandler to auction off Silicon Valley Bank, kicking off a high stakes sales process for the collapsed lender, according to two market sources who were granted anonymity to discuss the sale.

Andreessen Horowitz, one of Silicon Valley's largest and most prestigious venture capital firms, told its investors today that it will continue banking with Silicon Valley Bank "for the foreseeable future" but is crafting a longer-term plan to diversify. The note was sent today and viewed by Insider.

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According to reports, Shanghai Pudong Development Bank may acquire the China-based subsidiary of Silicon Valley Bank (SVB). Authorities in the Chinese city of Shanghai reportedly back the acquisition, which may help minimize the impact of SVB’s shutdown. In its statement following SVB’s demise, SPD Silicon Valley Bank reportedly said its operations remained stable.

SVB, short for Silicon Valley bank, created shockwaves in the markets last week. The bank sold its $21b bond portfolio at a loss. Depositors responded by removing assets from the bank en-masse, initiating a classic bank run as rumors of the bank’s insolvency spread over social media. Popular gaming platform, Roblox, announced they were unsuccessful in withdrawing $150m of company funds before the bank collapsed.

BlackRock Inc. Chief Executive Officer Larry Fink said the banking crisis could worsen beyond the failure of Silicon Valley Bank, worrying aloud about cracks in the financial system that formed during more than a decade of easy money and low interest rates.

The FDIC compensation and resolution of Silicon Valley Bank (SVB) have had a significant impact on the crypto market, with the compensation helping to restore confidence among investors and users alike.