Bankruptcy of Swiss bank creates uncertainty at Euro-Stablecoin

So far, Stablecoin has maintained its peg to the euro. However, the company behind AEUR warns of uncertainty regarding the reserve.

The ongoing insolvency proceedings of Switzerland's FlowBank SA are affecting the crypto sector. According to Swiss regulator FINMA, the bank on June 13, 2024 bankruptcy requested. This affects Anchored Coins AG, the Swiss company behind the so-called AEUR, a Stablecoin which is linked to the euro.

Part of the reserve, the company said, is involved in the bankruptcy estate of FlowBank SA. So far, AEUR has been able to maintain its peg to the euro. "Since the bankruptcy proceedings of FlowBank SA are still at an early stage, it is still unclear to what extent some of our collateral can be recovered," AEUR said. reports Anchored Coins.

As a result, there is a risk of a shortfall in coverage. In that case, the link to the euro cannot be maintained.

At the time of writing, Stablecoin has a market capitalization of nearly €67 million. In comparison, the largest Euro-Stablecoin (EURS) has a value of €124 million.

When trading launched on Binance, Stablecoin was already attracting attention. The price, normally pegged to the €, rose due to demand, causing investors to pay more than the coin should actually be worth.