Bloomberg reports that following the recent collapse of US banks that were favorable to cryptocurrencies, the operator of the fifth largest stablecoin worldwide, TUSD, has transferred $1 billion in assets to the Bahamas.
Archblock, which manages approximately $2 billion in reserves to back the TrueUSD coin, now holds around $1.4 billion in her account at Capital Union Bank based in Nassau.
Alex de Lorraine, the Chief Financial Officer and Chief Operating Officer of Archblock, explains that the decision to transfer reserves to Capital Union was due to deteriorating banking conditions for the cryptocurrency business in the US.
He emphasizes that the recent collapses of Silvergate, Signature, and Silicon Valley banks only highlight the dangers of vague crypto laws.
If companies such as Archblock were allowed to work with well-established banks such as Citi or JPMorgan, “I doubt you’d see the kind of volatility that you’ve seen over the past 72 hours,” says de Lorraine on Tuesday evening, March 14.
TUSD’s trading volume doubled after major cryptocurrency exchanges, including the Binance exchange, introduced zero commissions for trading TUSD in pairs with leading cryptocurrencies.
According to CoinGecko data, on February 22, the supply of the token was $970 million, and on March 15, the volume already exceeded $2.03 billion.
The daily trading volume of the token increased by 24% from $58.3 million to $72.6 million. TrueUSD, created by the TrueFi DeFi protocol team, operates on the Ethereum, TRON, and BNB Smart Chain blockchains, and its tokens are issued by the TrustToken platform.