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Stablecoin TrueedUSD (TUSD) slightly lost its dollar peg in the early hours of June 10 following a halt in mining activity through its technology partner Prime Trust.
The fifth largest stablecoin by market capitalization is trading at $0.9964 at its deepest point. According According to Coinmarketcap, it is valued at $0.9981 at the time of this writing. The current supply of TUSD is $2.04 billion, while its collateral is $2.08 billion, data from LedgerLens shows,
Announcement:
TUSD mints through Prime Trust have been put on hold until further notification.
Thank you for your understanding and we apologize for any inconvenience. Please contact support@trueusd.com with any further questions.
— TrueUSD (@tusdio) June 10, 2023
The recent depeg comes shortly after an announcement from the TrueUSD team explained that the minting of TUSD through Prime Trust was halted until further notice. TUSD mining and redemption services through other banking partners remain unaffected. “We would like 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 USD peg over the past 12 months.
It is unclear whether the halt in minting is related to the recent bankruptcy rumors of Prime Trust. A fintech infrastructure provider based in Nevada laid off a third of its workforce in January. It was also acting as an intermediary for Binance.US, routing its customer funds through banking partners amid the debanking of the crypto business in the United States.
Prime Trust is set to be bought as the deal works 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 deal, BitGo will acquire Prime Trust’s Payment Rail and Crypto IRA Fund, allowing it to expand its wealth management services. Terms of the agreement were not disclosed.
The potential acquisition comes as the US Securities and Exchange Commission is proposing changes to regulations limiting the ability of crypto companies to act as customer custodians.
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