Silicon Valley Bank (SVB), one of the recently closed down crypto-friendly banks in the U.S has been acquired by First-Citizens.
First-Citizens Bank & Trust Co. acquired the deposits and liabilities of SVB and is to open 17 former branches of defunct bank as First–Citizens Bank & Trust Company on March 27. SVB is selling assets worth $72 billion at $16.5 billion discount, FDIC said in a statement.
First Citizens To Acquire All Loans and Deposits
The FDIC in a statement on 27 March said it had “entered into an agreement with First-Citizens Bank & Trust Company to purchase and assume all deposits and loans of Silicon Valley Bridge Bank, N.A.” Similarly, HSBC acquired the U.K branch of the bank for £1.
Today, we entered into an agreement with First-Citizens Bank & Trust Company to purchase and assume all deposits and loans of Silicon Valley Bridge Bank, N.A.https://t.co/vjDsnQxhrr pic.twitter.com/MI5lXN5y6r
— FDIC (@FDICgov) March 27, 2023
Meanwhile, SVB Financial Group filed for bankruptcy last week, asking for Chapter 11 protection after its banking arm collapsed. Post the acquisition, the FDIC will continue to protect the deposits up to the insurance limit.
Many crypto startups have halted USD deposits, withdrawals, and trading as a result of SVB collapse, but there’s no statement on whether First-Citizens will restore services to these startups.
Will Silvergate Be Doing the Same?
Both Silvergate and SVB collapsed earlier this month for similar reasons. However, SVB is the first to file for bankruptcy. Will Silvergate make the same move? Only time will tell.
The collapse of these two banks and the closure of Signature Bank has affected the crypto space as well as general banking sector. Recent reports show that Deutsche Bank shares fell over the weekend, creating panic in Europe and raising concerns on the possibilities of the bank closing down.