TrueUSD loses dollar peg and stops minting via Prime Trust.
The stablecoin TruedUSD (TUSD) has slightly deviated from its peg to the US dollar in the early hours of June 10. This happened after a pause in the minting of TUSD by its technology partner Prime Trust. TUSD, the fifth-largest stablecoin by market capitalization, traded at $0.9964 at its lowest point, with a current value of $0.9981 according to CoinMarketCap. LedgerLens data shows that the current supply of TUSD is $2.04 billion, while its collateral is $2.08 billion.
Announcement: TUSD mints via Prime Trust are paused for further notification. Thanks for your understanding and we are sorry for any inconvenience. Please contact [email protected] for any further questions.
— TrueUSD (@tusdio) June 10, 2023
This deviation from the peg comes after an announcement from the TrueUSD team that the minting of TUSD via Prime Trust has been paused until further notice. However, TUSD minting and redemption services via other banking partners remain unaffected. The TrueUSD team stated that their partnerships with other banking institutions remain intact, allowing for seamless transactions.
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The stablecoin has experienced several deviations from the USD peg over the past year. It is currently unclear whether the pause in minting is related to recent rumors of insolvency surrounding Prime Trust. Prime Trust, a fintech infrastructure provider based in Nevada, laid off a third of its staff in January and was also acting as a middleman for Binance.US.
Prime Trust is reportedly set to be purchased by crypto custodian BitGo. BitGo signed a non-binding letter of intent to acquire the company on June 8, with the deal including the acquisition of Prime Trust’s payment rails and cryptocurrency IRA fund. The terms of the agreement were not disclosed.
This potential acquisition by BitGo comes as the U.S. Securities and Exchange Commission proposes rule changes that could limit the ability of crypto companies to act as a customer’s custodian.
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