The Signet payments network owned by Signature Bank is something the FDIC want to sell, according to a March 28 Bloomberg story.
The Federal Deposit Insurance Corp (FDIC) is seeking to sell Signet, the real-time payments network for crypto companies operated by the now failed Signature Bank. A spokesperson for the regulator confirmed the plan after the FDIC asked crypto depositors at Signature to close their accounts and move their money by April 5.
Previously, on March 19, the FDIC sold some of Signature Bank to New York Community Bankcorp and its affiliate, Flagstar Bank. That acquisition, however, did not cover all of the business, including Signature’s Signet network.
Instead, the FDIC, which first assumed control of Signature Bank on March 13 as a result of the failure of rival banks, continued to have control over Signet.
Some bitcoin businesses, including Coinbase, occasionally used the Signet network. The network made settlements possible more quickly than with certain conventional methods.
According to the most recent Bloomberg article, clients of Signature Bank who wish to part ways must transfer their funds by April 5 and cancel their accounts. Clients who have not requested a withdrawal by that time will receive a cheque for their remaining balance.
