The operator of the world’s fifth-largest stablecoin, Archblock, has transferred $1 billion in reserves backing the token to a bank in the Bahamas, as digital-asset firms seek other homes for their capital following the failure of numerous crypto-friendly lenders in the United States.
According to a real-time attestation by an independent accounting firm, Archblock, which handles the almost $2 billion in reserves supporting its TrueUSD stablecoin, now holds more than $1.4 billion of those funds with Nassau-based Capital Union Bank.
Archblock’s chief financial and operating officer said the decision to relocate money to Capital Union in recent days was prompted by worsening banking conditions for crypto firms in the United States. Even operational accounts to just pay taxes, administer payroll and pay expenses are very difficult to get if one is not a multibillion-dollar business,” he added in a late-Tuesday message.
Nonetheless, the stablecoin market remains relatively unequal and dominated by a small number of players. Tether’s USDT is by far the most popular, with $74 billion in circulation, according to CoinGecko data on Wednesday, with Circle’s USDC coming in second with $38 billion.
TrueUSD’s ultimate parent company is Techteryx Ltd., which purchased the asset’s intellectual property rights from Archblock in late 2020. Archblock, through its wholly-owned subsidiary TrueCoin LLC, continues to maintain and manage TrueUSD on Techteryx’s behalf.
Also read: Circle Clears USDC Minting and Redemption Backlog
