TrueUSD Says ‘Small Number’ of Users Impacted by Signature Bank Closure
Stablecoin issuer says USD funds held at Signature bank are now fully backstopped by Fed.
Singapore-based Techteryx, which issues TrueUSD, said Monday morning Asia time that minting and redemption is paused for its users with Signature Bank but continues unaffected across the rest of its banking network.
The stablecoin issuer disclosed in a December report that it splits its holdings across a variety of depository institutions in the U.S., Hong Kong and the Bahamas.
TrueUSD has a market cap of just over $2 billion. Data from Nansen.ai shows that Binance is the exchange with the largest holdings of TrueUSD at $428 million.
Currently, the trueUSD stablecoin has been knocked off its dollar peg and is trading at just slightly under $1 on Binance.
Coinbase says it has $240 million in cash at Signature bank but is able to process transactions through other banking partners. Paxos also disclosed it has $250 million at Signature Bank, but says it has private insurance on deposits in excess of FDIC insurance limits.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.