Crypto-Friendly SVB Acquired by First Citizens Bank at 99% Discount
First Citizens Bank acquires Silicon Valley Bank (SVB) for $500 million. The crypto-friendly Silicon Valley Bank bank was worth $40 billion a year ago, now it’s acquired at a 99% discount. First Citizens BancShares will take over $119 billion in deposits.
First Citizens BankShares holding company of First Citizens Bank was in advance talks to acquire Silicon Valley Bank from the Federal Deposit Insurance Corp (FDIC) on Monday. The news of First Citizens acquiring SVB calmed investors’ concerns about the credit crunch and broader systemic banking crisis.
The 17 Silicon Valley Bridge Bank, National Association branches will open as First–Citizens Bank & Trust Company on March 27, 2023, FDIC revealed in a new release. The FDIC also said First Citizens Bank & Trust Co will buy all of Silicon Valley Bank‘s deposits and loans from the FDIC.
Silicon Valley Bridge Bank had approximately $167 billion in total assets and about $119 billion in total deposits by March 10. The acquisition includes the purchase of about $72 billion of Silicon Valley Bridge Bank’s assets at a discount of $16.5 billion. Moreover, the FDIC will continue to remain a receiver of $90 billion in securities and other assets.
According to the FDIC, the cost of the failure of Silicon Valley Bank to its Deposit Insurance Fund (DIF) is nearly $20 billion. The exact cost will be revealed after the termination of the FDIC receivership.
Meanwhile, Bitcoin liquidity has dropped to a 10-month low. The liquidity represents how easy it is to buy and sell cryptocurrency. While the Bitcoin price has increased by over 70% since the beginning of the year, the current banking crisis, inflationary pressure, and uncertain macro environment resist BTC price at $28,000.
2023-03-27 14:29:25
Arbitrum TVL Soars 22% Weekly Following Much Anticipated ARB Airdrop
The total value locked in decentralized protocols on Ethereum’s popular layer-2 scaling solution – Arbitrum – is soaring. This comes shortly after the protocol released its much-anticipated ARB token through an airdrop to early adopters.
Data from DeFi Llama shows that the total locked value (TVL) in Arbitrum is up more than 22% during the past seven days alone. With this, Arbitrum is currently the fourth-largest network by means of TVL, with $2.18 billion, sitting right after Ethereum, Tron, and the BNB Chain. It also accounts for roughly 4.43% of the total value locked across all blockchains.
The ARB token itself is a governance tool, and the team distributed 11.62% of its total supply to early adopters who completed various tasks over the past years. In addition, 1.13% went to decentralized autonomous organizations (DAOs) that helped build applications on Arbitrum. At the time of this writing, ARB is trading at around $1.28 with a market capitalization of $1.62 billion, making it the 39th largest cryptocurrency by that metric.
2023-03-27 14:28:57
Gucci Joins Hands With the Company Behind the Bored Ape Yacht Club
Gucci is strengthening its relationship with Web3. On Monday, the luxury brand announced a multi-year partnership with Yuga Labs, the Web3 company behind several well-known NFT collections, including Bored Ape Yacht Club, Cryptopunks, Mebits, and Narrative NFT Project 10KTF.
It also runs the Otherside, a bored app-themed virtual world and game. The deal is meant to increase engagement between each company’s communities “by exploring the intersection between fashion and entertainment in the metaverse,” they said in a release.
2023-03-27 14:27:51
Bitcoin Gains as Investors Diversify amid Worries About Banking System; U.S. Equity Futures Rise
Bitcoin and the other top 10 non-stablecoin cryptocurrencies opened the working week with gains in Monday morning trading in Asia, as investors seek to diversify portfolios amid banking turmoil and the Federal Reserve’s latest rate hike. Litecoin led the winners. U.S. equity futures rose this morning as authorities sought to reassure investors the financial system is sound following bank failures and sharp declines in some lender’s stocks. The total crypto market capitalization rose 1.34% in the past 24 hours to US$1.17 trillion. Over the last 24 hours, total trading volume dipped 4.67% to US$31.46 billion. (forkast)
2023-03-27 13:20:35