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Shark Tank’s Mark Cuban asked a ‘big question’ on Sunday, following the news of the Signature Bank SBNY and Silicon Valley Bank, a subsidiary of the SVB Financial Group SIVB, collapse contagion spread.
What Happened: In a Twitter post, Cuban asked, “Now that the FDIC has protected depositors at Signature and SVB, the big question? Will their website and online systems be able to handle the crush of traffic tomorrow?” The Federal Deposit Insurance Corp, or FDIC, is the U.S. regulator that took control of Silicon Valley Bank on Friday after its collapse.
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Depositors at Silicon Valley Bank were assured that all their funds will be available to them, according to a joint statement from federal banking and finance regulators on Sunday.
“After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors,” Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell and FDIC Chairman Martin J. Gruenberg, said in a joint press release.
Circle Internet Financial, the issuer of Stablecoin USD Coin USDC/USD, said that the full $3.3 billion in reserve deposits held at Silicon Valley Bank will be recovered on Monday when the banks reopen in the U.S.
This accounts for 8% of the total USDC reserves, according to the statement. Additionally, the company noted that it had no cash reserves held at Signature Bank, which was taken over by the FDIC over the weekend.
Price Action: Bitcoin BTC/USD and Ethereum ETH/USD jumped on the news of the Fed rescuing the two banks. Apex crypto BTC was trading at $22,254, up 8.33% in the last 24 hours. ETH was up 8.10%, trading at $1,596, according to Benzinga Pro data.
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Image and article originally from www.benzinga.com. Read the original article here.