ChainCatcher reported that the collapse of the Swiss bank FlowBank, worth $781 million, is having a chain reaction on the cryptocurrency industry and threatening the existence of the stablecoin AEUR, according to DL News. Because Anchored Coins AG, a Swiss company that issued the euro-pegged stablecoin AEUR, deposited part of its $63 million euro stablecoin reserves in the troubled bank. According to a statement on the company's website, the company has suspended the issuance and redemption of its tokens until further notice. The company has also stopped accepting new customers.
Anchored Coins stated: “As the insolvency proceedings related to the liquidation of FlowBank SA are still in the early stages, it is unclear how much of this portion of our collateral will be recoverable. Therefore, in the event of a shortfall, the 1:1 redemption rate may not be maintained, which would result in corresponding losses for AEUR token holders.” The company also stated that “such losses would be shared pro rata among all AEUR token holders, as required by Swiss law.”