Gemini says it has no business ties with Signature Bank

Cryptocurrency exchange Gemini said it did not hold customer funds or reserves of the Gemini Dollar (GUSD) stablecoin in Signature Bank, which was shut down by US authorities.

1/ It’s very sad to hear the news about Signature Bank. They have been incredible partners to Gemini and our industry for the better part of a decade.

We have zero customer funds and zero Gemini dollar (GUSD) funds held at Signature Bank.

— Gemini (@Gemini) March 13, 2023

“Very sad to hear the news about Signature Bank. They have been incredible partners for Gemini and our industry for the better part of a decade.”

Representatives of the exchange emphasized that all customer funds are in JPMorgan, Goldman Sachs and State Street Bank. GUSD reserves are held in the last two and Fidelity.

3/ All GUSD reserves are held at State Street Bank, Goldman Sachs, and Fidelity.

— Gemini (@Gemini) March 13, 2023

“[…] all client funds and GUSD reserves are held 1:1 on Gemini and are available for withdrawal at any time,” the company said.

At the same time, miner Marathon Digital revealed that he has access to $142 million worth of deposits held by Signature Bank.

Marathon Digital Holdings’ deposits that were held at Signature Bank, New York, NY are secure and available for use as of Monday, March 13, 2023. Read the full update here: https://t.co/H5R6wpmB7Q

— Marathon Digital Holdings (NASDAQ: MARA) (@MarathonDH) March 13, 2023

“The company has access to its funds for treasury management purposes and pays all bills in the normal way. In addition, Marathon still holds over 11,000 BTC, which the firm believes provides financial opportunities beyond the traditional banking system,” the statement said.

Gemini previously said it held a portion of $267 million in GUSD reserves in accounts at another troubled bank, Silvergate Bank, at the end of January. Representatives of the platform assured that they had withdrawn both client funds and stablecoin collateral.

On March 9, Silvergate Capital Corporation, the holding company for Silvergate Bank, announced its intention to wind down operations and liquidate the bank.

Recall, on March 13, the US Treasury, Fed And FDIC announced the reorganization of Silicon Valley Bank and Signature Bank.

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