In response to the collapse of multiple crypto-friendly institutions in the United States, the operator of the fifth-largest stablecoin in the world, Archblock, has moved $1 billion in reserves backing the token to a bank in the Bahamas.
Archblock, which manages the over $2 billion in reserves backing its TrueUSD stablecoin, is now holding more than $1.4 billion of those assets with Nassau-based Capital Union Bank, according to a real-time attestation by an independent accounting company.
The decision to transfer funds to Capital Union in recent days, according to Archblock’s chief finance and operations officer, was brought on by deteriorating banking circumstances for crypto businesses in the United States. If one does not run a multibillion dollar company, even operational accounts to only pay taxes, manage payroll, and pay bills are quite tough to get.
Nonetheless, there is still a lack of competition and a limited number of firms that dominate the stablecoin industry. According to CoinGecko statistics on Wednesday, Tether’s USDT is by far the most popular cryptocurrency, with $74 billion in circulation, followed by Circle’s USDC with $38 billion.
Techteryx Ltd., the asset’s ultimate parent company, acquired the intellectual property rights from Archblock in late 2020. On behalf of Techteryx, Archblock continues to operate and oversee TrueUSD through its wholly-owned subsidiary TrueCoin LLC.
Compiled by Coinbold
