This move comes as a surprise to many, as SVB had been one of the biggest players in the banking sector.

The deal involves acquisition of approximately $72 billion worth of assets of Silicon Valley Bank at a reduced price of $16.5 billion. An estimated $90 billion in securities and other assets of the California-based lender will remain with the Federal Deposit Insurance Corporation (FDIC) for disposition.

First Citizens Bank, a major commercial bank in the US, will expand its services and presence with the acquisition while benefiting from SVB’s customer base and its experience in the tech industry. The deal is also beneficial to SVB’s former customers, as they will be able to access First Citizens Bank’s services.

Silicon Valley branches will now operate as First Citizens Bank, as the North Carolina-based lender taps into Silicon Valley’s vast talent pool and provide a platform for new ideas and innovation. This move is expected to further enhance First Citizens Bank’s presence in the region, while providing a new platform for the bank to connect with the tech industry.

Preserving the strong ties between legacy SVB’s Global Fund Banking business and private equity and venture capital firms, First Citizens Bank is set to accelerate its expansion in California and introduce wealth capabilities in the Northeast. This transaction will also allow SVB’s Private Wealth business to offer their high-net-worth customers a higher level of service and approach.

As a result, crypto app downloads have surged by over 15%, suggesting that investors are increasingly turning to digital assets as a safe haven from the instability of traditional banking.

In response to the surge, a number of leading crypto apps have seen a considerable rise in downloads, indicating the growing importance of digital assets for investors.

The top 10 apps are Coinbase, one of the most popular apps for buying, selling and managing cryptocurrency. In 2021, the company reached a $100 billion market valuation, making it the most valuable crypto company in the world.

Crypto.com has also seen significant growth in downloads, with its app increasing by more than 8%. Crypto.com is a popular option for both retail and institutional investors and its app is used to buy, sell, store and transfer cryptocurrency. The company’s MCO Visa card makes it easier to spend cryptocurrencies in everyday life.

Trust has also seen a huge surge in downloads. The platform is a secure cryptocurrency wallet that can be used to store, send and receive cryptocurrencies. The app is easy to use and also offers access to a variety of crypto services and features, making it a great option for investors.

Binance is another popular crypto app that has seen a big jump in downloads following SVB’s collapse. The app is used to buy, sell and manage cryptocurrency. It also allows users to trade a variety of digital assets, making it an ideal choice for investors looking for diversification.

Bitcoin and Crypto DeFi Wallet is among the 10 top crypto apps that have seen a big jump in downloads. The app is designed to make it easy to manage and access decentralized finance (DeFi) assets. Users can also access crypto-based lending, staking and trading services, making it an ideal option for those looking to explore the world of digital assets.

Blockchain.com is one of the oldest crypto wallet and exchange apps. The app is used to buy, sell and manage cryptocurrency and it also offers access to a variety of crypto services and features. It is a great choice for those looking to get started in the crypto space.

Popular app KuKoin is used to buy and sell a variety of digital assets, as well as to access a range of crypto services and features.

Kraken is one of the leading cryptocurrency exchanges and its app has seen a big jump in downloads. The app allows users to access a wide range of crypto services and features, as well as to buy, sell and manage digital assets.

eToro and BitPay are two of the leading crypto payment app providers. Both apps have seen a big jump in downloads, with over 10% combined increase. They make it easy to buy, sell and manage cryptocurrency, as well as to make payments in crypto.

Further report shows that the global market cap for all cryptocurrencies increased 8.3% during the same time period to about $1.1 trillion, slightly down from a weekly high of $1.14 trillion on Tuesday.

The surge in downloads of these top cryptocurrency apps following SVB’s collapse shows that investors are looking to protect their investments and are turning to the safety of cryptocurrency apps. With a wide range of crypto services and features available, these apps are becoming increasingly popular with investors looking to explore the world of digital assets.

Investors are increasingly looking for alternative investments, and cryptocurrency seems to be an attractive option for many. The traditional banking system is becoming increasingly unstable, and many are looking for secure, trustworthy alternatives. Hence, the potential for high returns has attracted more people to the cryptocurrency market.

Overall, the collapse of Silicon Valley Bank has had a huge impact on the cryptocurrency market. With the increased number of crypto app downloads and the increased trust in the industry, the cryptocurrency market will likely continue to grow and expand in the coming months and years. Despite the current instability, cryptocurrencies are still seen as a secure, viable option for those looking for alternative investments.

SVB’s Wednesday announcement of a $1.8 billion loss in the sale of U.S. treasuries and mortgage-backed securities due to increasing interest rates sparked panic, resulting in a dramatic 50% plunge in the share price. The bank’s decision to raise more capital and invest in higher-yield products was met with a rush of withdrawals by founders advised by their VCs to pull money or diversify away from the bank.

The reopening of the Bank will come with the FDIC in charge.

In imminent news, HSBC Holdings plc’s UK ring-fenced subsidiary, HSBC UK Bank plc, is acquiring Silicon Valley Bank UK Limited (SVB UK) for £1.

According to Noel Quinn, HSBC Group CEO: “This acquisition makes excellent strategic sense for our business in the UK. It strengthens our commercial banking franchise and enhances our ability to serve innovative and fast-growing firms, including in the technology and life-science sectors, in the UK and internationally.

“We welcome SVB UK’s customers to HSBC and look forward to helping them grow in the UK and around the world. SVB UK customers can continue to bank as usual, safe in the knowledge that their deposits are backed by the strength, safety and security of HSBC. We warmly welcome SVB UK colleagues to HSBC, we are excited to start working with them.”

Reports state that SVB UK had loans of approximately £5.5bn and deposits of approximately £6.7bnas of March 10, 2023. For the financial year ending December 31, 2022, SVB UK reported a pre-tax profit of £88m. Its tangible equity is estimated to be around £1.4bn. 

A definitive calculation of the gain resulting from the acquisition will be provided in due course. The assets and liabilities of the parent entities of SVB UK are excluded from the transaction which is now complete.

Lessons Learnt from Silicon Valley Bank’s Closure 

As Silicon Valley Bank winds down its operations and we reflect on the lessons learnt from its closure, we can use the experience to help us make better informed decisions in the future. Here, we will explore the key lessons learnt from the Silicon Valley Bank closure and how they can be applied to our own businesses and organizations.

The closure of Silicon Valley Bank (SVB) has been a major shock for many entrepreneurs, investors, and other stakeholders in the tech industry. SVB has been a leading player in the Silicon Valley startup scene since its founding in 1983, providing important financial services to startups and venture capitalists. 

The closure has highlighted the importance of diversifying a portfolio. As the SVB debacle has shown, putting all of your eggs in one basket can be a risky move. It is essential that businesses and individuals diversify their investments and banking accounts. This means putting funds into different banks and different products, to spread the risk.

Again, risk management is a key factor in the success of any financial institution. Banks must be mindful of their exposure to risk, and must regularly review their procedures to ensure that they are mitigating risk factors and protecting themselves against potential losses.

Another important lesson is the importance of diversification. In the tech industry, it is easy to become overly focused on a single venture or idea, and neglect to invest in other areas or diversify one’s portfolio. SVB’s closure serves as a reminder to investors and entrepreneurs alike that diversifying investments is critical to long-term success.

Finally, the closure of SVB also serves as a reminder of the importance of staying ahead of the curve when it comes to technology. It is important to keep up with the pace of innovation in the industry. As technology continues to advance, financial institutions must be prepared to invest in new technology, maintain the latest security protocols, and stay abreast of market developments.

The closure of Silicon Valley Bank serves as a cautionary tale for the tech industry. Risk management, diversification, and staying ahead of the curve are all critical elements of success. By considering these lessons, investors and entrepreneurs alike can ensure that their investments are as safe and successful as possible.