Archblock finds new shelter for its reserves
According to Bloombergthe world’s fifth-largest stablecoin operator TUSD, has moved $1 billion in reserves to Capital Union Bank in the Bahamas, as many digital companies seek “new homes” for their cash. them after the successive collapse of major financial institutions in the US.
The operator of the world’s fifth-largest stablecoin has moved $1 billion in reserves backing the token to a bank in the Bahamas https://t.co/Smsn85enfP
— Bloomberg Crypto (@crypto) March 15, 2023
Archblock currently holds about $2 billion as collateral for its stablecoin TrueUSD (or TUSD). Of that, more than $1.4 billion has just been sent to Capital Union Bank based in the Bahamas capital Nassau. On March 10, the figure stood at just $438 million.
Alex de Lorraine, CFO of Archblock shares with Bloomberg:
“The decision to transfer money to Capital Union Bank in recent days is a consequence of the ongoing banking scandals in the US. Even accounts that work just to pay taxes, manage payroll and pay expenses are difficult to maintain without being part of a multi-billion dollar business.”
Signature Bank, formerly Archblock’s largest banking partner, was recently abruptly shut down by US authorities. Archblock once deposited more than $852 million in this bank, according to the snapshot results recorded by ChainArgos. However, according to the report, Archblock managed to get rid of the money from Signature.
Meanwhile, the famous Capital Union Bank provides deposit and trading services for crypto businesses. The company is also one of the banking partners of the largest stablecoin issuer in the Tether market.
TrueUSD (or TUSD) has doubled the circulating supply over the past month after rival stablecoin BUSD once branded Binance, in legal trouble with US authorities. Since then, Binance has continuously issued large amounts of TUSD and put this stablecoin in many trading pairs on the exchange. But recently, Binance continues to have a “flattering” move, when announced a free stop of BTC trading, excluding pairs with TUSD.
TUSD was originally owned by the Trust Token platform, before it was acquired by Techteryx – an Asian multi-industry corporation. TrustToken also later split from TrueFi, renamed Archblock last year, continuing to operate and manage TrueUSD on behalf of Techteryx.
Stablecoins like TrueUSD are tokens that hold 1:1 value with a less volatile asset like the US dollar, backed by a large amount of cash and cash equivalents. They are often used in money transfers between exchanges and are a safe haven from price fluctuations. Since then, it has become an important link in the field of cryptocurrencies.
TUSD’s total market capitalization stands at nearly $2 billion and holds the 5th spot in the top stablecoin category. The trading volume of this stablecoin hovered around $37.7 million in the past 24 hours.
The failure of 3 banks in a row – Silvergate Bank, Silicon Valley Bank (SVB) and Signature Bank has caused many digital asset companies to stumble and have to urgently look for new solutions to preserve project assets. your storage.
The most obvious proof is none other than Circle – the issuer of USDC – the stablecoin has been heavily depeg after announcing it had exposure to $ 3.3 billion in cash with SVB.
Doubt that Justin Sun “controls” the TUSD coin
As Kyptos reported, Justin Sun is the second largest TUSD printer in history. At the same time, according to the information posted by the founder of TRON in October 2022, TUSD is also in the list of coins recognized by Dominica as a legal means of payment.
It is official! All #TRON cryptos including #TRX #BTT #JST #NFT #USDD #USDT #TUSD are granted statutory status as authorized digital currency and medium of exchange in the commonwealth of Dominica effective on October 7th 2022 🇩🇲 https://t.co/p97zJkzhUe pic.twitter.com/kbejwXrkXt
— HE Justin Sun (@justinsuntron) October 12, 2022
On the other hand, extracting the data listed by TrueUSD, the number of TUSD on the TRON system also accounts for an overwhelming proportion compared to other chains such as Ethereum, BNB Chain and Avalanche. Out of about 2 billion total circulating supply, 1.3 million TUSD, or 65%, is issued on TRON.
Linking the above information, it is possible that Justin Sun is the person behind controlling TUSD.