In a recent tweet, Argo Blockchain PLC revealed that it has no exposure to the shuttered SVB and Silvergate banks. It also shared a post responding to the bank issues, declaring that neither the Argo blockchain nor its subsidiaries are exposed to the risks stemming from the bank closures. As such, its 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 shutdown of Silvergate and Silicon Valley Bank (SVB).
Generally, 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 tied to the banks.
Argo Blockchain Confirms No Exposure To Shuttered 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 the Federal Reserve on the same day.
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The statement revealed that Signature Bank is not included in the systemic risk connected to the shuttered banks. As such, depositors, which include 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’s receiver for Signature Bank.
In light of this, the FDIC now has the mandate to transfer all the assets of Signature Bank users to Signature Bridge Bank. The idea is to increase the safety level of depositors. According to the NYDFS’s instruction, the FDIC will oversee the ongoing operations at Signature Bridge Bank.
The statement also confirmed that all borrowers and depositors in Signature Bank will now be customers of the new Signature Bridge Bank. Also, they can now access their funds through debit cards, ATMs, and checks and perform regular transactions, as normal banking activities resumed on March 13, according to the statement.
Meanwhile, Argo Blockchain stocks have gained 7.89% in 24 hours at the time of writing. According to data from TradingView, the price stands at 14.750 pounds.
A Brief On SVB And Silvergate Bank Collapse
Silicon Valley Bank (SVB) had a series of challenges and eventually shut down its operations on Friday, March 10. According to the report, the financial institution collapsed due to capital and bank-run crises.
The bank’s fallout affected some major digital currency networks, including Dogecoin. Following the news of the collapse, Dogecoin saw its price plunge and still showed no sign of a recovery soon.
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The collapse of Silvergate Bank was another blow to the industry. Given the recent regulatory challenges affecting its operations, the company was ending its financial operations. The news saw the price of its shares, with SI ticker, decline significantly, reaching a $5 price mark.
But Argo Blockchain is not exposed to SVB, and Silvergate, Circle, Coinbase, and others still have their funds tied up in the shuttered banks.
Featured image from Pexels and chart from Tradingview.com