Archblock operator of TrueUSD transferred its $1 billion reserve to offshore Account with Capital Union Bank in Bahama as banking crisis deepen in US

As banking crisis deepen in US and caused a ripple effect on crypto market many crypto project start moving their money out of banks and looking for offshore account as alternative.

In the wake of the three big 'S' bank collapsing in United States, Silvergate, Silicon valley bank, and Signature bank, and the problems facing stablecoins. TrueUSD the fifth-largest Stablecoin issued by Archblock moved its reserves that worth $1 billion to Capital Union Bank in Bahama.

The action began immediately Archblock partnering bank Signature in the brinks of collapse follow SVB, Archblock transferred it client funds to bank in Bahama to avoid what has been happening with other crypto project that have exposure to banks collapse.

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Archblock the operator of TrueUSD move away it money from Signature Bank is a good steps that I've been expecting lot of digital firms to do before now. I know Circle also see collapse of Silvergate as a joke before it been spread and affect its Stablecoins USD. Calling it a joke but not is what make Circle late attemption to withdraw it $3.3 billion reserve on SVB unsuccessful.

By now everyone of them are on the run to look for alternative account to keep their reserve for stability as collapsing of banks in US deepen. To be honest, the recent failure of banks caught attention that crypto need for more regulations, and guideline for any firms that want to go into the sector. Looking at stablecoins that we expected to be stable are now depeg by collapse of bank, I don't think that is a Stablecoin.

Stablecoins are token that supposed to maintain 1-1 dollar peg and help us to maintain the volatile in crypto sectors but most of them backed by banking system is the major problem we are facing now. I think crypto project should highlight this area and keep their customers funds or reserved away from banking operations.

I know you are wondering why TrueUSD transferred its reserves to offshore Account Capital Union Bank. But According to the Archblock's statement on Wednesday, “the decision to move funds to an offshore account with Capital Union Bank in Bahama was because the bank is well-known for crypto businesses, and its operation allow client to do transaction using same account use for traditional currency with digital assets and also is one of the best banking partners for stablecoin and moving the money was to secure the funds.

Well, it's a good step that others should follow concerning issue of banks and stablecoins. Stablecoins should be operating not inside banking system for it to have a great impact on the financial system.

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