Gemini crypto exchange reassured its customers that reputable banks, including Fidelity, hold all GUSD reserves.
The closure of Signature Bank and Silicon Valley Bank over the weekend had an adverse impact on the American banking industry. However, Gemini Trust Company LLC, a veteran cryptocurrency exchange founded in 2014 by Tyler Winklevossannounced zero exposure to Signature Bank. Notably, the cryptocurrency exchange received approval from the New York Department of Financial Services (NYDFS) to launch its GUSD stablecoin in September 2018. Ever since the Gemini dollar (GUSD) has remained pegged to the dollar with minimal outliers.
As a result, the Gemini dollar has seen its market capitalization rise steadily to around $603,606,960 today, and a 24-hour traded volume of approximately $1.2 million. Traded in over 41 cryptocurrency exchanges, the Gemini dollar is trusted by cryptocurrency traders for its regulatory approvals and frequent examinations by LLP and BPM.
Gemini Customer Funds’ Security
The Gemini exchange informed its customers that all funds are held and secured by JPMorgan Chase & Co (NYSE: JPM), Goldman Sachs Group Inc (NYSE: GS), and State Street Corp (NYSE: STT). As such, Gemini reassured its customers that the fall of the three American banks did not affect its operations.
“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 exchange noted.
Additionally, the Gemini crypto exchange reassured its customers that reputable banks, including Fidelity, hold all GUSD reserves. As such, the company indicated that all GUSD are backed 1:1 with the dollar and are available for redemption at any time.
3/ All GUSD reserves are held at State Street Bank, Goldman Sachs, and Fidelity.
— Gemini (@Gemini) March 13, 2023
Previously, the Gemini cryptocurrency exchange announced that it had no banking partnership with Silicon Valley Bank despite the $25 billion bailout by the federal government.
Market Outlook
The Gemini crypto exchange offers over 90 digital assets for trading, including Ethereum. The company has focused on crypto custody services for institutional investors, including the Gemini eOTC, an electronic over-the-counter trading platform. Notably, the cryptocurrency exchange has partnered with Mastercard to issue a credit card that WebBank issues.
The company has an NFT marketplace dubbed Nifty Gateway that has helped Gemini traders venture into the metaverse and digital art collection. Nevertheless, the company competes with other exchanges, including Coinbase, for the global market. As such, Gemini is keen to obtain as many operating licenses as possible before the next cryptocurrency bull market.
