Flagstar Bank, a subsidiary of New York Community Bancorp, has agreed to acquire $38.4 billion worth of non-crypto deposits and $12.9 billion in loans from the collapsed Signature Bank.
However, the $4 billion of crypto-related deposits will not be included in the purchase and assumption agreement. The US Federal Deposit Insurance Corporation (FDIC) confirmed that these deposits would be transferred directly to customers who opened a digital banking account.
This transfer will amount to 4.5% of the total $88.6 billion deposits that Signature Bank had as of December 31, 2022. The takeover deal will see Signature Bank’s 40 branches operating as Flagstar Bank from March 20.
All deposits assumed by Flagstar Bank will continue to be insured up until the $250,000 insurance limit. However, crypto firms such as Coinbase, Celsius, and Paxos, which have exposure to Signature Bank, have not commented on the issue.
Previously, an FDIC spokesperson had denied that any buyer of Signature would have to divest crypto activities as part of the rescue plan.
