NEW: State and federal regulators have taken over Silicon Valley Bank. The startup-focused bank counted a number of crypto firms as clients. nikhileshde realDannyNelson report
Explore the policy fallout from the 2022 market crash, the advance of CBDCs and more.Silicon Valley Bank was shuttered by the California Department of Financial Protection and Innovation on Friday, marking the second bank to shut down within days.
The DFPI said in a statement that it had taken possession of the bank, “citing inadequate liquidity and insolvency.” The Federal Deposit Insurance Corporation has taken receivership of the bank, DFPI said, which the FDIC confirmed. “Silicon Valley Bank is a state-chartered commercial bank and member of the Federal Reserve System based in Santa Clara, with total assets of approximately $209 billion and total deposits of approximately $175.4 billion as of Dec. 31, 2022. Its deposits are federally insured by the FDIC subject to applicable limits,” DFPI said in its statement.
The bank’s closure follows fast on the heels of competitor Silvergate’s voluntary liquidation earlier this week. Silvergate said in its announcement earlier this week that all deposits would be repaid. While not perceived as “crypto-friendly” as Silvergate, the tech-forward Silicon Valley Bank did count a number of crypto entities as clients – especially hedge funds and VC firms. According to CoinDesk research, Blockchain Capital, Castle Island Ventures, Dragonfly and Pantera all had relationships with the bank.
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