TrueUSD stops minting via Prime Trust, loses dollar peg

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Stablecoin TruedUSD (TUSD) slightly lost its dollar peg early in the morning of June 10 following the suspension of minting activity by its technology partner Prime Trust.

The fifth-largest stablecoin by market cap traded at $0.9964 at its lowest point. according to Submitted to CoinMarketCap, its value is $0.9981 at the time of this writing. According to LedgerLens data, TUSD currently has $2.04 billion in supply and $2.08 billion in collateral. show.

announcement:

TUSD Mint via Prime Trust has been suspended for further notice.

We apologize for any inconvenience and thank you for your understanding. If you have any further questions, please contact us at support@trueusd.com.

— TrueUSD (@tusdio) June 10, 2023

The recent depeg follows an announcement from the TrueUSD team, which reported that minting of TUSD by Prime Trust has been suspended until further notice. His TUSD minting and redemption services through other banking partners remain unaffected. “We would like to ensure that our partnerships with other banking institutions will remain intact and seamless transactions will be possible,” the statement said.

The stablecoin has repeatedly lost its USD peg over the past 12 months.

It’s unclear if the minting suspension has anything to do with the recent bankruptcy rumors surrounding Prime Trust. The Nevada-based fintech infrastructure provider laid off a third of its workforce in January. It also acted as an intermediary for Binance.US, custody of customer funds through affiliated banks, as the cryptocurrency business was being de-banked in the United States.

A deal is underway with crypto asset manager BitGo, which will buy Prime Trust. According to a June 8 announcement, BitGo has signed a non-binding letter of intent to acquire the company. The deal will allow BitGo to expand its wealth management services by acquiring Prime Trust’s payment rail and cryptocurrency IRA funds. Terms of the deal were not disclosed.

The potential acquisition comes as the U.S. Securities and Exchange Commission is proposing rule changes that limit the ability of cryptocurrency companies to act as custodians for their customers.

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