Coinbase and Paxos Disclose Exposure to Signature Bank

On Sunday evening, Signature Bank became the latest financial institution to wind up operations. Following the news, numerous crypto firms took to Twitter to announce whether they were exposed to the crypto-friendly bank.

A joint statement released by Federal Deposit Insurance Corporation (FDIC), the Federal Reserve, and US Treasury indicates that Signature Bank was closed by the New York State financial regulators. However, the statement also said the bank would reopen on Monday, promising that all depositors would be paid in full.

Paxos Exposure to Signature Bank

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Meanwhile, BUSD issuer Paxos wrote on Twitter that it is holding more than $240 million at Signature Bank. The firm also disclosed that it holds private deposit insurance in excess of the cash balance that it has at the bank.

Paxos is pleased with the extraordinary measures that the government has taken to protect depositors. That said, the company expects the funds to be available today when Signature Bank resumes.

The stablecoin issuer reported last week that it had no exposure to Silicon Valley Bank, which its collapse marked the second-biggest financial institution failure in American history.

Elsewhere, the top crypto exchange in the US, Coinbase, has announced that it has around $250 million in its Signature Bank account. The company also expects to recover its funds fully.

Is Binance Exposed to Signature Bank?

Besides Paxos and Coinbase, Binance is another crypto company suspected to have exposure to Signature Bank, although not much. A few months ago, the world’s leading exchange disclosed that Signature Bank was among its many banking partners, but only 0.01% of its users were using the bank at that time.

As of Monday morning, Binance had not issued any statement regarding its exposure to Signature Bank.

Further, the decentralized credit bureau CreditCoin took to Twitter to claim it has no exposure to Silicon Valley Bank or Signature Bank.

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Meanwhile, Signature Bank Chicago, a company not affiliated with the fallen Signature Bank, says it has no crypto exposure. The statement comes after the firm noted that ABC News had used its logo incorrectly.