Author: Shenlian DCNews
Compiler: Sister Shen
Twitter: DeepChain
Twitter：https://twitter.com/DeepChainUS
Stablecoin TruedUSD (TUSD) slightly lost its peg to the U.S. dollar in the early hours of June 10, after minting activity was suspended through its technology partner Prime Trust.
The fifth-largest stablecoin by market cap is trading at $0.9964 at its deepest level. As of this writing, it is worth $0.9981, according to CoinMarketCap. Data from LedgerLens shows that TUSD’s current supply is $2.04 billion, while its collateral is $2.08 billion.
Announcement: TUSD minting through Prime Trust has been suspended until further notice. Thank you for your understanding and we apologize for the inconvenience. If you have any questions, please contact support@trueusd.com.
— Real Dollars (@tusdio) June 10, 2023
The latest depeg follows an announcement from the TrueUSD team, which reported that TUSD minting through Prime Trust has been suspended until further notice. TUSD minting and redemption services through other banking partners are not affected. “We would like to assure you that our partnerships with other banking institutions remain unchanged, allowing for seamless transactions,” the statement said.
Over the past 12 months, stablecoins have repeatedly lost their peg to the U.S. dollar.
It’s unclear if the halt in minting is related to recent bankruptcy rumors surrounding Prime Trust. The company, a Nevada-based fintech infrastructure provider, laid off a third of its staff in January. It also acted as an intermediary for Binance.US, holding its customer funds through banking partners during the debanking of U.S. crypto businesses.
Prime Trust is set to be acquired as a deal is in the works with crypto custodian BitGo. According to a June 8 announcement, BitGo has signed a non-binding letter of intent to acquire the firm. Through the deal, BitGo will acquire Prime Trust’s payment rails and cryptocurrency IRA funds, enabling it to expand its wealth management services. Terms of the agreement were not disclosed.
The potential acquisition comes as the U.S. Securities and Exchange Commission proposed rule changes that would limit crypto companies’ ability to act as custodians for clients.
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