Bank of England Shuts Down Silicon Valley Bank UK: Blockchain VCs Lose $6B

• The Bank of England (BoE) has recently announced that Silicon Valley Bank UK (SVB UK) will stop making payments and deposits.
• This comes after California regulators shut down SVB in the United States on the same day.
• Major blockchain venture capitalists had over $6 billion in assets with SVB UK, and a group of U.K. VCs released a statement in support of SVB UK.

Bank of England Closes Silicon Valley Bank UK

The Bank of England (BoE) recently announced that Silicon Valley Bank’s U.K branch (SVB UK) will be “stopping payments or accepting deposits”. The BoE also plans to petition the court to initiate a “Bank Insolvency Procedure” against SVB UK as it has no “critical functions” supporting the UK’s financial system.

Financial Services Compensation Scheme

The Financial Services Compensation Scheme (FSCS) have stated they will immediately pay out up to £85,000 or up to £170,000 for joint accounts, in case an insolvency procedure is initiated.

Support from Digital Entrepreneurs

On March 12th, a group of U.K VCs including Index Ventures and Atomico released a statement supporting SVB UK, calling it a “trusted” and “valued partner” that plays a pivotal role in assisting British entrepreneurs with their businesses. Similarly, The Coalition for a Digital Economy expressed concern about companies and investors who had substantial exposure to SVB UK being adversely affected by its closure.

Assets Held by Blockchain Venture Capitalists

A Castle Hill analysis from March 11 showed major blockchain venture capitalists had over $6 billion worth of assets with SVB UK before its collapse.

Responsibility for Remaining Assets & Obligations

Following the closure of SVBUK, bank liquidators will be responsible for handling all remaining assets and obligations throughout its bankruptcy proceedings so any recoveries can be distributed to creditors accordingly

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