No Funds Held in Signature Bank Clarifies Gemini Exchange

Photo by PiggyBank on Unsplash

The Gemini exchange has reassured its consumers that all GUSD reserves are held with respectable banks, including Fidelity.

The weekend’s failure of Signature Bank & Silicon Valley Bank to remain open was detrimental to the overall state of the banking industry in the United States.

On the other hand, Gemini Trust Company LLC, an experienced cryptocurrency exchange established in 2014 by Cameron siblings Tyler Winklevoss, has declared (1) that it has no exposure to Signature Bank.

Notably, the Gemini cryptocurrency exchange was granted permission by the New York Department of Financial Services (NYDFS) in September 2018 to launch its GUSD stablecoin.

Since then, the Gemini dollar (GUSD) has maintained a relatively stable relationship with the dollar, with only minor deviations.

Because of this, the Gemini dollar’s market capitalization has been continuously increasing, and as of today, it stands at roughly $603,606,960, with an approximate 24-hour trading volume of roughly $1.2 million.

The Gemini dollar is a cryptocurrency that market participants trust due to the regulatory permissions it has received and the frequent audits it undergoes by LLP and BPM. The Gemini dollar is traded on over 41 different cryptocurrency exchanges.


Protection of Customers’ Money at Gemini

Customers of the Gemini exchange were advised that their monies are being held and protected by JPMorgan Chase, Goldman Sachs, and State Street Corp.

As a result, Gemini assured its clients that the failure of the three US banks would not affect the company’s operations.

“It’s quite upsetting to learn this information regarding Signature Bank. During the better part of a decade, they have been great partners to both Gemini and our industry.

According to the Gemini exchange,

“we have zero customer funds, and zero Gemini dollar (GUSD) funds kept with Signature Bank.”

In addition, the Gemini cryptocurrency exchange reminded (2) its user base that respected financial institutions, including Fidelity, hold all GUSD reserves.

Per the information provided by the company, all GUSD is backed 1:1 with the dollar and can be redeemed at any moment.

The Gemini crypto exchange announced that it did not have a banking connection with Silicon Valley Bank, even though the federal government had provided a $25 billion bailout for the cryptocurrency industry.


Gemini Exchange Market Outlook

The cryptocurrency exchange Gemini currently trades for more than 90 digital assets, including Bitcoin and Ethereum.

The company has mostly concentrated on providing cryptocurrency custody services for institutional investors, such as the Gemini eOTC, an online OTC trading platform.

It is important to note that the crypto exchange has partnered with Mastercard to facilitate the issuance of a credit card by WebBank.

Gemini traders have been able to explore the metaverse and build digital art collections with the assistance of the company’s NFT marketplace, which goes by the name Nifty Gateway.

Despite this, the business competes for the worldwide market with other exchanges such as Binance, Coinbase, and Kraken.

Because of this, Gemini is eager to acquire as many operating licenses as feasible before the next bitcoin bull market.

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