Gemini says no funds at Signature Bank backing GUSD

Read full article at News.

Crypto exchange Gemini had no funds at Signature Bank, and its Gemini US Dollar (GUSD) stablecoin was not backed by any deposits at the failed bank, according to a March 13 official tweet from the company.

The exchange further clarified that it had partnered with Signature in the past, stating, “They [Signature] have been incredible partners to Gemini and our industry for the better part of a decade.” However, all current reserves are held at only three United Stat banks — State Street Bank, Goldman Sachs and Fidelity — Gemini said.

The company also stated that it is actively monitoring bank counterparty risk to ensure that customer funds and GUSD backing are not impacted.

On March 13, Circle’s USD Coin (USDC) lost its peg in the secondary market due to fallout from the Silicon Valley Bank collapse, leading to speculation that GUSD and other stablecoins may also lose their pegs. USDC regained its peg on March 13.

Gemini emphasized that each GUSD coin is backed by dollar reserves, stating:

“As a reminder, Gemini is a full-reserve exchange and custodian. This means that all customer funds and Gemini dollar reserves are held 1:1 on Gemini and are available for withdrawal at any time.”

The collapse of Signature was part of a series of bank failures that swept the U.S. in early March. Silvergate Bank agreed to “voluntarily liquidate” on March 8, followed by Silicon Valley Bank being shut down on March 10.

This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.

#Bitcoin #Crypto #Cryptocurrency

Related articles

Houbi Cut Ties With Signature Bank and Silvergate Before Their Collapse (Report)

Read full article at CryptoPotato.Huobi had reportedly withdrawn all its assets from Signature and Silvergate Bank prior to their demise.  However, numerous other platforms and crypto-related firms got burned from their existing exposure to the aforementioned banks, including Coinbase and Paxos. Huobi disclosed to Reuters that its customers’ funds remain unaffected by the recent banking crisis […]

Learn More

Bitcoin hits new 9-month highs above $28K as markets flipflop over FOMC

Read full article at News. Bitcoin price action targets $28,500 with “all classes” buying BTC, but the odds of the Fed pausing rate hikes are decreasing by the hour. Market Update Own this piece of history Collect this article as an NFT Bitcoin (BTC) headed to new nine-month highs after the March 21 Wall […]

Learn More

Ripple Vs. SEC: XRP Holders Need A ‘Thin Win,’ Here’s Why

Read full article at Bitcoinist.J.W. Verret has outlined in an interview with John E. Deaton why XRP holders should hope for a “thin victory” for Ripple against the U.S. Securities and Exchange Commission (SEC). The former member of the SEC’s Investor Advisory Committee and an associate law professor at George Mason University in securities law […]

Learn More