The financial conglomerate HSBC said it has acquired Silicon Valley Bank UK, the British subsidiary of the US-regulated financial institution that was placed into receivership by authorities.
The buyer will pay £1 ($1.21). The assets and liabilities of the parent company of the US bank are excluded from the deal.
As of 10 March, SVB UK’s loan book stood at £5.5 billion (~$6.7 billion), and deposits amounted to £6.7 billion (~$8.1 billion).
For 2022 the bank posted pre-tax profit of £88 million (~$107 million). Its core capital stood at £1.4 billion (~$1.7 billion).
HSBC said the deal will broaden its ability to serve innovative firms.
“SVB UK clients can be confident that their deposits are backed by HSBC’s strength,” — the statement said.
On 10 March, the California Department of Financial Protection and Innovation closed the parent SVB and appointed the FDIC as receiver.
Subsequently, the US Treasury, the Fed and FDIC said they would rescue SVB and Signature Bank. The decision led to a reduction in the depegging of stablecoins.
The USDC co-emitter Circle acknowledged that it holds in SVB part of the reserve backing the asset ($3.3 billion). After the announcement, the stablecoin lost parity with the US dollar, which led to a similar deviation in the ‘stablecoin’ FRAX from Frax Finance and DAI from MakerDAO.
The project’s community voted to change protocol parameters to limit the impact of USDC issues.