Crypto exchange Coinbase has announced a new political campaign called #Crypto435 to promote pro-crypto policies in the United States. 

Coinbase Discloses $240 Million Exposure to Signature Bank

  • Coinbase, Paxos, and Celsius are some of the crypto companies that have confirmed their exposure to the Signature bank.
  • The collapse of both Signature Bank and Silicon Valley Bank poses huge risks for crypto companies.
  • The US government pledged to take decisive steps to protect the country’s economy.

The collapse of Signature Bank has left several institutions on their toes as funds are being tied up in the cash-strapped bank. Crypto exchange Coinbase is one of the major crypto companies with funds in the collapsed crypto-friendly bank.

Crypto lender Celcius and stablecoin issuer Paxos are other crypto companies with confirmed exposure to Signature Bank. The bank was shut down by New York regulators and the United States Federal Deposit Insurance Corporation on March 12. Regulators claimed Signature Bank posed a “systemic risk” and had to be closed to “protect the U.S. economy.” Some financial experts believe that several top companies could suffer heavy losses from this.

Crypto companies are hopeful they can access their funds held in the bank, with Paxos tweeting that “the government has taken extraordinary measures to protect customers and announced all customer deposits at Signature Bank will be fully guaranteed and expect to be made available to customers on Monday.” Paxos also denied having any relationship with California-based Silicon Valley Bank, which was shut down last Friday.

Coinbase also remains positive that it will recover its funds. The exchange endured a difficult weekend that saw it suspend USDC conversions after Circle disclosed that it had $3.3 billion in exposure to Silicon Valley Bank. USDC lost its peg shortly after that.

The Celsius Official Committee of Unsecured Creditors noted that Signature Bank “held some of its funds.” However, it did not disclose the level of exposure. Since Signature Bank serviced several top crypto companies, there was an understandable panic amongst crypto users.

Projects with no exposure to the collapsed firm took to social media to quell fears of exposure and assure their communities of their financial stability. Tether’s chief technology officer, Paolo Ardoino, joined the likes of’s CEO, Kris Marszalek, in sending a message clarifying their position with the bank.

The US Government Pledges to Protect its Economy

Meanwhile, the US government has pledged to take “decisive actions” to protect the country’s economy. Such steps might include ensuring customers have access to their funds. The Fed, U.S. Treasury, and FDIC recently assured that Silicon Valley Bank customers will have complete access to their deposits starting on Monday, adding that the Federal Reserve Board will provide loans to banks in order to ease stress across the financial system.

The fall of Silicon Valley Bank threatened to be an existential crisis for many tech startups, and several cryptocurrency companies, including Ripple, BlockFi, Pantera, and Avalanche.

Lawrence Woriji Verified

Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.

Latest News