New York Community Bank Will Acquire Signature — But Not Crypto Holdings

An estimated $4 billion in cryptoassets will remain under the receivership of the FDIC

article-image

Poetra.RH/Shutterstock.com modified by Blockworks

share

A subsidiary of the New York Community Bankcorp, Inc. has entered an agreement to purchase Signature Bank, the Federal Deposit Insurance Corporation (FDIC) said in a press release on Sunday.

The latest deal includes all $38.4 billion in Signature’s assets and $12.9 billion in loans, which were purchased at a significant discount of $2.7 billion. 

What’s not included in the acquisition is approximately $60 billion in loans — which will remain under the receivership of the FDIC until later distribution — and $4 billion in deposits from Signature’s cryptocurrency business. 

All Signature customers with cryptocurrency-related deposits with Signature bank will receive their funds directly from the FDIC

The 40 branches of Signature Bank will operate during normal business hours under the subsidiary Flagstar Bank, starting today.

Signature Bank was the third bank to close its doors this month, following the collapse of Silicon Valley Bank and Silvergate Bank

Unlike the other two banks, however, Signature bank was shut down by New York state regulators, ostensibly, to protect the US banking system, although not due to insolvency.

Its closure has drawn concern across the broader cryptocurrency industry, as it was one of the few traditional financial institutions that recognized cryptoassets. 

A CoinGecko report shows that the crypto company which has had the most exposure to the bank failures is Circle — the issuer of the USDC stablecoin.

Circle announced last week that it was accelerating the onboarding of a new banking partner, Cross River Bank.

Paxos, Coinbase, BlockFi also have material exposure to the shuttered bank. Paxos reported $250 million held at Signature, while Coinbase had $240 million with Signature Bank, and BlockFi noted $227 million in assets were affected.


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
  • Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.jpg

Research

Bluefin possibly stands at an inflection point. The token is near an all-time low yet the protocol’s spot volume market share and derivatives exchange usage have been increasing month over month since its November launch. Given its current market position and the upcoming upgrades (for both Bluefin and SUI), there may be upside potential before the increased supply growth in December. However, strong opposition from existing competitors (like Cetus and Suilend), as well as new entrants (like Aftermath), pose key challenges to Bluefin’s medium-term success.

article-image

What Grayscale’s watching going into the second quarter and why crypto had a rough start to the year

article-image

Sol’s price drop was partially triggered by one of the year’s more chaotic memecoin events

article-image

Are digital assets just part of “normal” finance conversations now?

article-image

It’s a busy week as DC prepares for confirmations and policies that may have major impacts on crypto

article-image

NFT collection Azuki is releasing anime-inspired decks for a physical trading card game

article-image

Fidelity is planning a stablecoin launch, FT reports, as more companies flock to the digital-dollar business