Signature Bank
Shut DownInfrastructure · ✝ 2023
A crypto banking lifeline seized over a single weekend.
Signature Bank was a crypto-friendly US bank whose Signet network let clients settle in dollars around the clock. In March 2023, amid the regional banking panic, New York regulators seized and closed the bank, with deposits ultimately covered.
- Peak
- ~$110B in assets
- Cause
- Shut Down
- Year of death
- 2023
☠️ Cause of death
Regulators shut the bank during the March 2023 banking turmoil following deposit flight, ending one of crypto's key fiat on-ramps.
📓 Lessons left behind
- —Crypto's fiat rails depend on a few fragile banks.
- —Concentration in one banking partner is systemic risk.
- —Bank runs move faster than any blockchain settles.
🌱 The idea that survived
Banking redundancy
Pushed crypto firms to diversify banking partners and reduce single-bank dependence.
#infrastructure#banking#regulation