Signature’s Signet platform works as usual despite collapse

1 year ago 78

Signature's Signet platform works as usual despite collapse

Despite the recent collapse of Signature Bank, its real-time payments platform will continue to operate through the new Bridge Bank Signature.

Signet is a real-time payment platform used by prominent institutional clients in the crypto industry such as Coinbase and Circle. It’s temporarily operated by the FDIC after the assets of the closed bank were transferred to the newly formed Bridge Bank Signature.

Related: Circle USDC recovers amid SVB and Signature collapses

Following the voluntary liquidation of another crypto-friendly bank, Silvergate, which offered its own real-time payments platform named SEN, Signet was one of the last options for institutional customers to handle 24/7 crypto banking.

Related: Silvergate stock plunges

The closure of Signature by regulators over the weekend has unsettled crypto industry players, leaving them to look for new banking partners to fill the void, although Signature’s CEO announced that the bank will continue to offer all services to its customers. Yet, Signet was not mentioned.

With all of the deposits and substantially all of the assets of former Signature Bank, the bank will continue to take care of its clients, providing a full suite of loan, deposit, and banking services.

Circle CEO Jemmy Allaire added to the uncertainty when he shared in the Twitter thread that the company wasn’t able to process minting and redemptions through Signet after Signature announced it was closing. He added that the company has deepened its relationship with BNY Mellon and found a new banking partner – Cross River Bank.

Update thread on USDC

We were heartened to see the US government and financial regulators take crucial steps to mitigate risks extending from the fractional banking system.

100% of deposits from SVB are secure and will be available at banking open tomorrow.

— Jeremy Allaire (@jerallaire) March 12, 2023

Allaire said:

Additionally, we will be bringing on a new transaction banking partner with automated minting and redemption potentially as soon as tomorrow.

The source associated with Signature Bridge told CoinDesk there’s no contradiction between Allaire’s tweet and Signature Bridge’s press release announcing business as usual:

This tweet came out last night, prior to our announcement today that Signature Bridge Bank is open for business.

Another Signature customer, Coinbase, also said the company continues to operate as usual. However, Coinbase didn’t disclose details about Signet:

Despite the turbulence we have seen in the traditional banking sector recently, Coinbase continues to operate as usual. At Coinbase all client funds continue to be safe and accessible including USDC conversions which will resume on Monday.

— Coinbase (@coinbase) March 12, 2023

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