Due to the collapse of Swiss bank FlowBank, the issuance and redemption of the euro stablecoin AEUR has been suspended

2024-08-16 08:14:58

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ChainCatcher news, according to DL News, the collapse of Swiss bank FlowBank, valued at $781 million, is causing a ripple effect in the cryptocurrency industry and threatening the existence of the stablecoin AEUR. This is because the Swiss company Anchored Coins AG, which issues the euro-pegged stablecoin AEUR, has deposited a portion of its $63 million euro stablecoin reserves in the troubled bank. According to a statement on the company's website, it has suspended the issuance and redemption of its tokens until further notice. The company has also stopped accepting new clients.

Anchored Coins stated: "As the bankruptcy proceedings related to FlowBank SA's liquidation are still in the early stages, it is unclear how much of this portion of our collateral can be recovered. Therefore, if a shortfall occurs, the 1:1 redemption rate may not be maintained, which would result in corresponding losses for AEUR token holders." The company also mentioned, "In accordance with Swiss law, such losses will be proportionally distributed among all AEUR token holders."

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