The Blubber

Coinbase, $COIN, said it had $240 million balance at Signature Bank, $SBNY, which has just been closed by State authorities.

Coinbase said:

Despite the turbulence we have seen in the traditional banking sector recently, Coinbase continues to operate as usual. At Coinbase all client funds continue to be safe and accessible including USDC conversions which will resume on Monday.

All client cash at banks continues to be protected by FDIC pass-through insurance. Due to FDIC's hold on Signature’s transactions, we’re currently facilitating all client cash transactions with other banking partners.

As of close of business Friday March 10 Coinbase had an approximately $240m balance in corporate cash at Signature. As stated by the FDIC, we expect to fully recover these funds.

Additionally, the Treasury says it sees some institutions with issues similar to Silicon Valley Bank, per Bloomberg.

Additionally an US Treasury official says this situation is not 2008 and firms are not being bailed out.

Today, Federal Reserve announces new emergency bank term funding program.

The Federal Reserve board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.

To provide liquidity to US Depository institutions, each federal reserve bank would make advances to eligible borrowers, taking as collateral certain types of securities.

Treasury Department, using the exchange stabilization fund, would provide $25 billion as credit protection to the Federal Reserve banks in connection with bank term funding program.

Additionally, Signature Bank, $SBNY, has been closed by State authorities.

Read more: https://unusualwhales.com/news/signature-bank-sbny-has-been-closed-by-state-authorities