Coinbase Is Under Pressure as Signature Bank Failure Adds to Crypto Banking Woes

The brief de-pegging of stablecoin USDC and surprise closure of Signature Bank over the weekend only add to the financial woes facing the crypto sector, putting digital asset broker Coinbase Global under pressure. Analysts are growing more cautious.

A crisis of confidence across U.S. banks is hitting crypto companies particularly hard—and it’s now gone far beyond last week’s collapse of crypto-focused banker Silvergate Capital (ticker: SI). The federal government swept in on Friday to shut down Silicon Valley Bank and announced Sunday that Signature Bank (SBNY) would also be closed, marking the biggest banking collapses since the 2008-09 financial crisis.