Signature Bank has collapsed and Flagstar Bank, a subsidiary of New York Community Bancorp, will purchase $38.4 billion worth of non-cryptocurrency-related deposits and $12.9 billion in loans.

The United States Federal Deposit Insurance Corporation (FDIC) has confirmed the agreement, and Flagstar Bank will take over Signature Bank’s 40 branches from March 20. Deposits assumed by Flagstar Bank will continue to be insured up until the $250,000 insurance limit. However, the takeover deal will not include crypto-related deposits, which are worth approximately $4 billion.

The FDIC has stated that these deposits will be transferred directly to customers who have a digital banking account. Coinbase, Celsius, and Paxos have confirmed their exposure to Signature Bank.

Source: Cointelegraph