Hassan Maishera
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 US Government announced the closure & backstopping of Signature Bank. As a result, TrueCoin paused TUSD minting & redemption for our small number of Signature Bank users. Minting & redemption continues unaffected across the rest of our banking network.https://t.co/kLKvrRUhE1
— TrueUSD (@tusdio) March 13, 2023
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.
