Swiss euro stablecoin provider Anchored Coins warns customers of potential losses following FlowBank’s bankruptcy.

Swiss stablecoin issuer Anchored Coins has warned holders of its euro-pegged token AEUR that they may face losses after one of its reserve banks, Geneva-based online bank FlowBank SA, was placed into bankruptcy and liquidation by Swiss regulator FINMA in June 2024. Anchored Coins had deposited a portion of the collateral backing its roughly €63 million AEUR supply at FlowBank as part of a “fallback redemption guarantee” structure, meaning those funds were intended to protect token holders if the issuer itself defaulted. With FlowBank now in liquidation and no clarity yet on how much of those deposits will be recovered, the company has paused new customer onboarding, as well as issuance and redemptions of AEUR, and has told users that the token’s 1:1 euro redeemability may not be fully maintained. Anchored Coins stated that, under Swiss law and its token terms, any shortfall in collateral ultimately recovered from FlowBank would be passed on proportionally to all AEUR holders, implying potential “haircuts” on redemptions if reserves end up below the total token supply. The situation highlights a structural risk of fiat-backed stablecoins: even when a token is designed to hold a strict fiat peg, its stability depends on the creditworthiness and operational health of the banks holding its reserves, as well as the speed and outcome of any insolvency proceedings. The case also comes as European and Swiss authorities are tightening rules around stablecoin reserve management and licensing, making AEUR’s troubles a live test of how investor protections work when a regulated reserve bank fails in a relatively early-stage stablecoin ecosystem.

✨ AI-generated background, compiled from web sources — not editorial content.

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