Posted inNews

TrueUSD stops minting via Prime Trust, loses dollar peg

June 10, 2023No Comments

Stablecoin TruedUSD (TUSD) slightly lost its peg to the dollar in the early hours of June 10, following a pause in minting activities through its technology partner Prime Trust.

The fifth largest stablecoin by market capitalization was trading at $0.9964 at its deepest point. According for CoinMarketCap, its value is $0.9981 at the time of writing this article. TUSD's current supply is $2.04 billion while its collateral is $2.08 billion, data from LedgerLens shows.

The recent decoupling comes on the heels of an announcement from the TrueUSD team, advising that minting of TUSD through Prime Trust has been halted until further notice. TUSD minting and redemption services through other banking partners will not be affected. "We want to assure you that our partnerships with other banking institutions remain intact, allowing for seamless transactions," the statement said.

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

Price in thousands of USD in the last 12 months. Source: CoinMarketCap

It is not clear if the minting discontinuation is related to the recent insolvency rumors surrounding Prime Trust. The company, a Nevada-based fintech infrastructure provider, laid off a third of its staff in January. He was also acting as a broker for Binance.US, hold your customers' funds through banking partners amid the removal of banks from the crypto business in the United States.

main trust is ready to be purchased as a deal is being worked on with crypto custodian BitGo. According to a June 8 announcement, BitGo signed a non-binding letter of intent to acquire the company. With the deal, BitGo will acquire Prime Trust's payment rails and cryptocurrency IRA fund, allowing it to expand its wealth management services. Terms of the deal were not disclosed.

The potential acquisition comes as the US Securities and Exchange Commission is proposing rule changes limiting the ability of crypto firms to act as customer custodians.

Magazine: AI Eye: 25,000 Traders Bet on ChatGPT Stock Picks, AI Sucks at Rolling Dice & More