Analysts, warned that market sentiment would remain skittish despite the US measures.
“Markets remain unsettled from the SVB failure,” said Alvin Tan, head of FX strategy at RBC Capital Markets in Singapore. “The situation is evolving, but volatility looks set to remain elevated in coming days.”
The relief for crypto was tempered by New York’s chief financial regulator taking possession of Signature Bank, a key banking firm for crypto companies.
With the fall of SVB and California-based Silvergate Bank, its closure means that three of the main US banks used by crypto businesses have failed this year.
Shares of Signature Bank were halted for trading, with US officials saying depositors of Signature Bank would be made whole at no loss to the taxpayer.
Its fall represents another blow to connections between the crypto and banking sectors, already strained by a growing US regulatory crackdown.
Top US exchange Coinbase Global Inc tweeted on Sunday that after Signature’s fall it was “facilitating all client cash transactions with other banking partners,” without elaborating.
Coinbase said that as of Friday’s close, it had an approximately US$240 million balance in corporate cash at Signature, but expects to fully recover the funds.