Gemini says it has no business relationship with Signature Bank

The cryptocurrency exchange Gemini said it did not hold customer funds or Gemini Dollar (GUSD) reserves at Signature Bank, which was closed by U.S. 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

“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,” the statement said.

Representatives said all client funds are held at JPMorgan, Goldman Sachs and State Street Bank. GUSD reserves are held at Goldman Sachs, State Street Bank 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 stored 1:1 on Gemini and available for withdrawal at any time,” the company said.

Meanwhile, mining firm Marathon Digital said it had access to deposits totaling $142 million held at 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 and pays all bills in the ordinary course. In addition, Marathon still holds more than 11,000 BTC, which, the firm says, provides financial capabilities beyond the traditional banking system,” the statement said.

Earlier, Gemini stated that at the end of January it held part of the $267 million in GUSD reserves on accounts at another troubled bank — Silvergate Bank. The exchange’s representatives said that both customer funds and collateral for the stablecoins had been withdrawn.

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

As a reminder, on March 13 the U.S. Treasury, Fed and FDIC announced the bailout Silicon Valley Bank and Signature Bank.