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Flagstar Bank to Acquire Signature Bank’s, Excluding Crypto

Flagstar Bank to Acquire Signature Bank's, Excluding Crypto


Signature Bank, a New York-based bank, recently collapsed and its deposits and loans are set to be sold to Flagstar Bank, a subsidiary of New York Community Bancorp. However, cryptocurrency-related deposits will not be part of the deal.

FDIC Announces Purchase and Assumption Agreement

The United States Federal Deposit Insurance Corporation (FDIC) announced on March 19 that Flagstar Bank will acquire $38.4 billion worth of non-cryptocurrency-related deposits and $12.9 billion in loans from Signature Bank under a “purchase and assumption agreement.”

This agreement was reached following Signature Bank’s recent collapse, which saw it taken over by the FDIC. The FDIC then sought to find a buyer for Signature Bank’s deposits and loans, eventually settling on Flagstar Bank.

Crypto-Related Deposits Excluded from Deal

While Flagstar Bank will acquire the majority of Signature Bank’s deposits and loans, cryptocurrency-related deposits will not be part of the deal. It is not yet clear what will happen to these deposits and whether they will be returned to customers or transferred to another institution.

This exclusion of crypto-related deposits from the deal highlights the continued regulatory uncertainty surrounding cryptocurrencies in the United States. While some states have introduced regulations to govern the use and trading of cryptocurrencies, there is still no federal framework in place.

Implications for Signature Bank Customers

For customers of Signature Bank, the sale of deposits and loans to Flagstar Bank will likely have little impact on their day-to-day banking activities. Deposits and loans will be transferred to Flagstar Bank under the terms of the purchase and assumption agreement, and customers will be able to continue banking as usual.

However, for customers with cryptocurrency-related deposits, the exclusion of these deposits from the deal may cause concern. It is important for these customers to stay informed about the future of their deposits and to seek guidance from their financial advisors or legal counsel.


The sale of Signature Bank’s deposits and loans to Flagstar Bank under a purchase and assumption agreement is a significant development in the banking industry. While the exclusion of cryptocurrency-related deposits highlights the regulatory uncertainty surrounding cryptocurrencies, the transfer of non-crypto-related deposits and loans is expected to have little impact on customers of Signature Bank.

As the regulatory landscape surrounding cryptocurrencies continues to evolve, it will be interesting to see how the banking industry adapts and incorporates cryptocurrencies into their operations.


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