North Carolina’s First Citizens Bank Takes Over Silicon Valley Bank: Will BTC See a Surge?

• First Citizens Bank has announced its plans to acquire all deposits and loans of Silicon Valley Bank as confirmed by the FDIC.
• Another regional bank, Valley National Bancorp, is also understood to have submitted a bid for the failed Silicon Valley bank.

North Carolina-based First Citizens Bank has announced its plans to acquire all deposits and loans of Silicon Valley Bank, as confirmed by the Federal Deposit and Insurance Corporation (FDIC). The deal is expected to be finalized in the coming months, pending regulatory approval.

According to a statement released by First Citizens Bank, the acquisition will expand its national presence and provide customers with access to innovative financial products and services. The bank currently has branches across 19 states and serves more than 5 million customers.

Notably, the bank is the 30th largest commercial bank in the United States, with $167 billion in total assets and $119 billion in deposits as of March 10.

In a statement, First Citizens Bank Chairman and CEO Frank Holding Jr. said, “We’re excited to welcome Silicon Valley Bank’s clients and employees to First Citizens Bank. We believe this acquisition will allow us to continue growing and serving the needs of our customers, while also expanding our presence in key markets.”

The acquisition has sparked speculation about the potential impact on the cryptocurrency market, as Silicon Valley Bank has been known to provide banking services to several cryptocurrency exchanges. Some analysts believe that the acquisition could lead to increased institutional adoption of Bitcoin and other cryptocurrencies, although it remains to be seen how this will play out.

Today, we entered into an agreement with First-Citizens Bank & Trust Company to purchase and assume all deposits and loans of Silicon Valley Bridge Bank, N.A.https://t.co/vjDsnQxhrr pic.twitter.com/MI5lXN5y6r

— FDIC (@FDICgov) March 27, 2023

Taking a step back, Silicon Valley Bank which was founded in 1983, has a strong focus on providing financial services to technology and life science companies. The bank has branches in several technology hubs, including San Francisco, Boston, and New York.

Related: Another Crypto-Linked Bank Bites the Dust: SVB’s Failure Triggers FUD

Much like the start-up clientele it courted, SVB grew at a breakneck pace with assets nearly quadrupling between 2018 and 2021. It was the nation’s 16th largest bank by the end of 2022, with $209 billion in assets. That should have set off alarm bells on its own.

In the head-spinning hours that followed Silicon Valley Bank became a global household name, though hardly in a manner its founders would have hoped for: It was officially the second-largest bank failure in US history, after Washington Mutual in 2008.