Signature is one of the main banks to the cryptocurrency industry. It had a market value of $4.4 billion as of Friday, according to FactSet. The stock had fallen nearly 40% this year after its crypto banking peer Silvergate Capital liquidated its bank. 

To stem the damage and stave off a bigger crisis, the Fed and Treasury created an emergency program to backstop deposits at both Signature Bank and Silicon Valley Bank using the Fed’s emergency lending authority.

While depositors will have access to their money, equity and bondholders at both banks are being wiped out, a senior Treasury official said.

CNBC Regulators close New York’s Signature Bank, citing systemic risk