This is the third major bank that has fallen in the space of a week, and investors are spooked. The joint announcement that depositors will be protected above the $250,000 guaranteed by the FDIC appears to be meant to reassure banking customers that their money will not be frozen. Signature had $88.59 billion in deposits as of December 31, 2022. The New York Department of Financial Services has taken possession of the bank.

Signature was one of two banks that was widely used in cryptocurrency. Like Silvergate, which collapsed on March 8th, Signature had a network that let crypto companies transfer dollars in real-time. With both crypto banks gone, it may be harder to get back into dollars.

Additionally, the Fed’s announcement said that depositors at Silicon Valley Bank will also be made whole. That’s good news for crypto — since stablecoin provider Circle was keeping $3.3 billion of its reserves there. Circle operates USDC, a token that is always meant to be worth $1 — and an important part of crypto payments.

Update March 12th at 8:02PM: Adds Coinbase statement, Circle statement.