Stablecoin TrueUSD (TUSD) saw a slight deviation from its dollar peg on June 10, following the suspension of its minting activities through tech partner Prime Trust. At its lowest point, the fifth-largest stablecoin by market capitalization traded at $0.9964, and it is currently valued at $0.9981, according to CoinMarketCap.
Data from LedgerLens indicates that the current TUSD supply stands at $2.04 billion, backed by $2.08 billion in collateral.
This fluctuation follows an announcement by the TrueUSD team that the minting of TUSD through Prime Trust has been temporarily halted. The team confirmed that minting and redemption services via other banking partners remain unaffected. “Our partnerships with other banking institutions remain intact, ensuring smooth transactions,” the statement assured. Over the past year, the stablecoin has frequently deviated from its USD peg.
The connection between the minting suspension and recent insolvency rumors surrounding Prime Trust remains unclear. Prime Trust, a Nevada-based fintech infrastructure provider, laid off a third of its staff in January. The company has been managing Binance.US customer funds through its banking partners amid the broader US banking system’s resistance to crypto businesses.
Crypto custodian BitGo is reportedly planning to acquire Prime Trust. BitGo signed a non-binding letter of intent to purchase the company on June 8, aiming to acquire Prime Trust’s payment rails and cryptocurrency IRA fund to expand its wealth management services. The deal’s specific terms have not been disclosed.
This potential acquisition emerges as the U.S. Securities and Exchange Commission is proposing regulatory changes that would restrict crypto companies’ capacity to act as a customer’s custodian.
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