TrueUSD (TUSD), a stablecoin pegged to the US dollar, has lost its dollar peg after the TrueUSD team announced a pause on TUSD minting through Prime Trust until further notice.
TUSD is one of the most popular stablecoins in the world, with a market capitalization of over $2 billion. It is backed by US dollars held in reserve by Prime Trust, a Nevada-based financial institution.
The minting pause through Prime Trust comes after rumors of financial difficulties at the company. Prime Trust has denied these rumors, but the pause has nonetheless shaken confidence in TUSD.
As a result of the pause, TUSD has lost its peg to the dollar. On June 10, TUSD traded as low as $0.9964.
The TrueUSD team has said it is working to restore pegging and will continue to mint TUSD through other banking partners.
