Signature Bank Closure Only Affects a Fraction of TrueUSD Users, Company Confirms

Techteryx, a Singapore-based stablecoin issuer that issues TrueUSD, announced on Monday that it has paused minting and redemption for users with Signature Bank.

However, the suspension does not affect the rest of its banking network. This disclosure follows the December report from the stablecoin issuer, which revealed that it spreads its holdings across several depository institutions in the U.S., Hong Kong, and the Bahamas.

Currently, TrueUSD has a market capitalization of over $2 billion, and according to Nansen.ai data, Binance is the exchange with the largest holdings of TrueUSD, holding $428 million. However, TrueUSD has been knocked off its peg and is trading at $0.997 on Binance.

Meanwhile, Coinbase and Paxos have also disclosed their cash holdings at Signature Bank, with Coinbase having $240 million and Paxos having $250 million. However, both firms claim that they can process transactions through other banking partners.

The news of Techteryx’s suspension of minting and redemption with Signature Bank may cause concern among TrueUSD users, but the fact that the suspension only affects Signature Bank suggests that Techteryx’s banking network is diverse and robust.

Furthermore, the disclosure from Coinbase and Paxos suggests that other stablecoin issuers are also prepared for potential disruptions in their banking relationships.