TrueUSD stops minting via Prime Trust, loses dollar peg
The current supply of TUSD is $2.04 billion, while its collateral is $2.08 billion, data from LedgerLens shows.Announcement: TUSD mints via Prime Trust are stopped briefly for further notification.Thanks for your understanding and we are sorry for any trouble. The current depeg comes on the heels of a statement from TrueUSD group, reporting that minting of TUSD by means of Prime Trust was stopped briefly until additional notice. TUSD minting and redemption services through other banking partners remains untouched.
Stablecoin TruedUSD (TUSD) slightly lost its dollar peg in the early hours of June 10, following a pause in minting activities through its innovation partner Prime Trust. The fifth-largest stablecoin by market capitalization traded at $0.9964 at its inmost point. According to CoinMarketCap, its worth is $0.9981 as of this writing. The existing supply of TUSD is $2.04 billion, while its security is $2.08 billion, information from LedgerLens shows.Announcement: TUSD mints via Prime Trust are paused for further notification.Thanks for your understanding and we are sorry for any trouble. Please contact support@trueusd.com for any further questions.– TrueUSD (@tusdio) June 10, 2023
The recent depeg comes on the heels of a statement from TrueUSD team, reporting that minting of TUSD via Prime Trust was stopped briefly until further notice. TUSD minting and redemption services by means of other banking partners remains unaffected. “We desire to assure you that our partnerships with other banking institutions stay undamaged, enabling smooth deals,” states the statement.The stablecoin has repeatedly lost its USD peg over the past 12 months.TUSD rate over the previous 12 months. Source: CoinMarketCapIts uncertain if the halt in minting is related to current reports of insolvency surrounding Prime Trust. The company, a fintech infrastructure company based in Nevada, laid off a 3rd of its staff in January. It was likewise acting as a middleman for Binance.US, holding its consumer funds through banking partners amidst the debanking of crypto company in the United States. Prime Trust is set to be bought as a deal remains in the deal with crypto custodian BitGo. According to an announcement on June 8, BitGo signed a non-binding letter of intent to acquire the company. With the offer, BitGo will acquire Prime Trusts payment rails and cryptocurrency IRA fund, enabling it to expand its wealth management services. The regards to the contract were not disclosed. The prospective acquisition comes as the U.S. Securities and Exchange Commission is proposing rule modifications restricting the capability of crypto business to serve as a clients custodian.Magazine: AI Eye – 25K traders bet on ChatGPTs stock picks, AI sucks at dice throws, and more