Paxos says it currently holds $250M at Signature Bank
Several hours after the New York Department of Financial Services (DFS) said it had taken possession of Signature Bank, Paxos published a statement on the matter. Paxos estimates its holdings at Signature Bank at $250 million.
The statement from Paxos disseminated via social media can be read below:
“The protection and safety of customer assets is Paxos’ top priority, which is why we always take active measures to safeguard customers’ funds.
The government has taken extraordinary measures to protect customers and announced all customer deposits at Signature Bank will be fully guaranteed and expect to be made available to customers on Monday.
Paxos currently holds $250M at Signature Bank and holds private deposit insurance well in excess of our cash balance and FDIC per-account limits. Seeking private deposit insurance is part of our conservative approach to managing customer assets exceeding FDIC insurance limits.
Paxos maintains relationships with multiple leading global banks and are always looking to expand our network of banking partners.
Paxos, as a regulated NYDFS Trust Company, holds all customer assets and stablecoin reserves bankruptcy remote. All Paxos stablecoin reserves are fully-backed and redeemable to customers 1:1 with the U.S. dollar at all times.
We are prudent risk managers & hold more than 90% of stablecoin reserves in short-term US Treasury bills and overnight repo. This reserve management structure is designed to reduce exposure to the US banking system and limit our US dollar cash holdings at depository institutions”.