FDIC Study Links Digital Assets to Fastest Bank Runs in US History

The FDIC released a staff study linking depositors tied to the digital-asset sector and active escrow accounts to the fastest bank runs in U.S. history (2023). Signature Bank’s active-escrow balances — 13–15% of deposits pre-run — plunged 88% between March 7–17, 2023, and over 99.5% of those balances were uninsured. Wire outflows were central: SBNY saw $23.3 billion in outbound wire requests on March 10 and Signature Bridge completed $19 billion on March 13. The report shows digital-asset and fintech-linked deposits were highly mobile and amplified uninsured-deposit flight (uninsured balances fell 68% at SBNY, 62% at SVB, 47% at FRB). Market implications: the study underscores structural liquidity and counterparty risks for crypto firms and their banking partners, likely sustaining regulatory scrutiny and negative sentiment toward crypto-linked banking relationships — a headwind for risk assets and a potential source of volatility for crypto markets.