On Monday morning Asia time, TrueUSD stablecoin, announced that it has paused minting and redemption for users with Signature Bank. However, the rest of its banking network remains unaffected.
According to a December report, Techteryx splits its holdings across various depository institutions in the United States, Hong Kong, and the Bahamas.
TrueUSD currently has a market cap of just over $2 billion, and Binance holds the largest holdings of TrueUSD at $428 million, according to data from Nansen.ai.
Unfortunately, TrueUSD has been knocked off its peg and is trading at $0.997 on Binance. Meanwhile, Coinbase has $240 million in cash at Signature Bank but can still process transactions through other banking partners.
Paxos also reported having $250 million at Signature Bank but claims to have private insurance on deposits that exceed FDIC insurance limits.
While the pause in minting and redemption for Signature Bank users may be concerning, it’s worth noting that the rest of Techteryx’s banking network is operating as usual. As such, users of TrueUSD who are not with Signature Bank should not be affected.
It’s also important to remember that stablecoins like TrueUSD are designed to maintain a stable value in relation to a certain currency, such as the US dollar. While fluctuations can occur, the goal is always to maintain that stability as closely as possible.
