Argo Blockchain reports zero exposure to SVB and Silvergate Bank, here’s why
In a recent chirping, Argo Blockchain PLC disclosed that it has no exposure to the closed SVB and Silvergate banks. It also shared one mail responds to banking questions, declaring that neither the Argo blockchain nor its subsidiaries are exposed to the risks resulting from the bank shutdown. As such, operations will continue regardless of the collapse of these banks.
The collapse of some top banks recently created chaos in the crypto market and affected many firms. A notable example is the closure of Silvergate and Silicon Valley Bank (SVB).
In general, all crypto firms exposed to these banks felt the heat of the fallout at the time. But from Argo Blockchain’s recent statements, it is not part of the firms with funds linked to the banks.
Argo Blockchain confirms no exposure to closed banks
According to a report, Argo Blockchain had secured some of its funds in Signature Bank, which later collapsed after Silvergate and SVB. However, the report further noted that as of March 13, these funds were still safe and available to users.
This is a result of the statement from the Federal Deposit Insurance Corporation (FDIC), the United States Department of the Treasury, and Federal Reserve on the same day.
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The statement revealed that Signature Bank is not included in the systemic risk associated with the closed banks. As such, depositors, which include the Argo blockchain, can rest assured that their funds are safe. The FDIC also received approval from the New York State Department of Financial Services (NYDFS) to be the signature receiver for Signature Bank.
In light of this, the FDIC is now mandated to transfer all the assets of Signature Bank users to Signature Bridge Bank. The idea is to increase the level of security for depositors. Pursuant to the NYDFS’ instructions, the FDIC will monitor the ongoing operations of Signature Bridge Bank.
The statement also confirmed that all borrowers and depositors of Signature Bank will now be customers of the new Signature Bridge Bank. Also, they can now access their money through debit cards, ATMs and checks and carry out regular transactions, as normal banking activities resumed on March 13, according to the statement.
Meanwhile, Argo Blockchain shares has gained 7.89% in 24 hours at the time of writing. According to data from TradingView, the price stands at £14,750.
A brief about SVB and the Silvergate Bank Collapse
Silicon Valley Bank (SVB) faced a number of challenges and finally closed its operations on Friday 10 March. reportcollapsed the financial institution due to capital and bank driven crises.
The bank’s fallout affected some major digital currency networks, including Dogecoin. Follows the news of the collapse, Dogecoin saw its price plunge and still showed no signs of a recovery anytime soon.
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The collapse of Silvergate Bank was another blow to the industry. Given the recent regulatory challenges affecting the business, the company ended its financial operations. The news saw the price of the shares, ticker SI, drop significantly, reaching a price of $5.
But Argo Blockchain is not exposed to SVB, and Silvergate, CircleCoinbase and others still have their funds tied up in the closed banks.
Featured image from Pexels and chart from Tradingview.com