Some TrueUSD Users Were Impacted By Signature Bank’s Closure

Twitter icon  •  Published vor 1 Jahr  •  Hassan Maishera

Techteryx has revealed that the recent closure of Signature Bank has affected a small number of its TUSD users.

TLDR;

  • Techteryx says a small number of its users were affected by Signature Bank’s closure.
  • The bank was closed a few hours ago by New York banking authorities. 
  • TrueSUD’s issuer said it is still processing transactions despite the setback.

Signature Bank’s Closure Is Affecting Stablecoins

Singapore-based Techteryx, the company behind the TrueUSD stablecoin, announced on Monday that some of its users have been affected by the recent closure of Signature Bank.

On Sunday, the Federal Reserve announced that the Federal Depository Insurance Corporation (FDIC) had taken receivership of the bank. As a result of this move, Techteryx said that minting and redemption are paused for its users with Signature Bank. However, the company continues unaffected across the rest of its banking network.

The stablecoin issuer revealed a few months ago that it splits its holdings across a variety of depository institutions in the United States.., Hong Kong and the Bahamas.

TUSD is one of the leading stablecoins in the crypto space, with a market cap of roughly $2 billion. 

This latest development saw TUSD slightly lose its peg against the US Dollars and is now trading at $0.99. 

Techteryx is not the only stablecoin issuer that has been affected by Signature Bank’s closure. Coinbase, the largest crypto exchange in the United States, revealed that it has $240 million in cash at Signature bank but is able to process transactions via other banking partners. 

Paxos, another popular crypto company, disclosed it has $250 million at Signature Bank but pointed out that it has private insurance on deposits in excess of FDIC insurance limits.

Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.