Gemini says it doesn’t have ties with failed Signature Bank.
Crypto exchange Gemini has revealed that it did not hold any funds at the defunct Signature Bank.
The news was revealed in a March 13th tweet. The crypto exchange highlighted that all its customers’ funds are held at JPMorgan, Goldman Sachs, and State Street Bank.
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On top of that, the crypto exchange also informed that its Gemini Dollar (GUSD) reserve funds are held at State Street Bank, Goldman Sachs, and Fidelity.
According to the exchange, all of its GUSD reserves are held 1:1. Therefore, customers can withdraw them at any time.
The company also said it was actively monitoring counterparty risk to ensure there was no blowback on its customers.
The recent collapses in the US banking industry have impacted the crypto sector. For instance, Circle’s native stablecoin, USDC, lost its peg due to the failure of Silicon Valley Bank. Consequently, many speculated GUSD and other stablecoins would follow a similar trajectory.
The downfall of Signature Bank has many crypto investors worried, as the bank had deep ties with the crypto industry. It is believed that its destruction was triggered by the bank run which followed the collapse of Silicon Valley Bank on March 10th.
It is believed that, on the same day, customers withdrew $10 billion worth of deposits.
On Sunday, New York’s financial regulator and Federal Deposit Insurance Corporation (FDIC) stopped the bank’s operations. Based on the authorities, it did so to protect bank customers and stabilize the US financial sector.