Signature Bank, compatible with cryptocurrencies, closed by regulators

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State authorities closed New York-based Signature Bank SBNY -22.87% on Sunday after Silicon Valley Bank was closed by regulators on Friday in the biggest bank failure since the 2008 financial crisis .

All Signature Bank depositors will be compensated, according to a joint statement from the Treasury Department, Federal Reserve and FDIC.

Also see: Silicon Valley Bank Depositors Will Get All Their Money, Regulators Say

Signature Bank has been popular among crypto companies, especially after crypto-enabled Silvergate Bank SI -11.27% said last Wednesday that it would shut down operations.

Signature Bank provides depository services for its customers in digital assets, but does not invest in, trade in, hold on its own balance sheet or provide custody of digital assets, and does not lend against or does not provide loans secured by these assets, the company said.

The Federal Reserve also announced a new emergency lending program on Sunday to bolster the capacity of the banking system.

US stock markets advanced on Sunday afternoon, with Dow YM00 futures, +1.10% up 0.5%, and the S&P 500 ES00, +1.55% futures up 0, 8%. Futures for the Nasdaq 100 NQ00, +1.65%, rose 0.9%, according to FactSet data.

Major cryptocurrencies rallied on Sunday. Bitcoin BTCUSD, +4.73% jumped 6.4% in the past 24 hours to around $21,842 and ether ETHUSD, +3.50% gained 7% to $1,576, data shows from CoinDesk.

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