On Friday, the California Department of Financial Protection and Innovation closed Silicon Valley Bank due to insufficient liquidity and insolvency, making it the second bank to close within days. The Federal Deposit Insurance Corporation has taken over the bank's receivership. Silicon Valley Bank, which has assets of approximately $209 billion and deposits of approximately $175.4 billion, serves as a commercial bank and a member of the Federal Reserve System.
Despite being less crypto-friendly than its competitor, Silvergate, Silicon Valley Bank has had a number of cryptocurrency clients, including hedge funds and VC firms. Fellow West Coast lenders, First Republic Bank and Western Alliance Bancorp, have seen a drop in their shares, as well as crypto-friendly Signature Bank.
Silicon Valley Bank's collapse is one of the largest in history, with $211 billion in assets, second only to Washington Mutual Bank's failure in 2008. The FDIC has confirmed that all insured depositors will have access to their insured deposits no later than Monday morning, while uninsured depositors will receive an advance dividend in the coming week.