The United States Federal Deposit Insurance Corporation (FDIC) announced that after a week of its collapse, Signature Bank and its 40 total branches are set to be sold to Michigan-based Flagstar Bank in a non-cryptocurrency deal worth $38.4 billion.

Furthermore, $12.9 billion will be taken in loans by Flagstar Bank to complete the purchase. Starting March 20, all 40 banks of Signature Bank will operate under the Flagstar Bank trademark, and all deposits assumed by Flagstar Bank will remain insured up to the $250,000 insurance limit.

According to the FDIC, the takeover deal would mean the transfer of deposits to customers which hold a digital banking account, stating:

“The FDIC will provide these deposits directly to customers whose accounts are associated with the digital banking business.”

The banking sector has recently witnessed quite the conundrum following the collapse of Silicon Valley Bank (SVB), which saw the rise in the price of Bitcoin (BTC) of 16% in the past 5 days, at the time of writing this article.

Sources:

https://cointelegraph.com/news/signature-bank-deposits-branches-sold-to-flagstar-crypto-not-included

https://www.fdic.gov/news/press-releases/2023/pr23021.html

https://coinmarketcap.com/currencies/bitcoin/