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On June 22, TrueUSD announced on Twitter that its TUSD stablecoin was “unaffected” by the troubled Prime Trust, which is reportedly facing regulatory issues.
Nevada-based Prime Trust reportedly abruptly stopped all deposits and withdrawals of fiat and cryptocurrencies at the behest of government financial regulators. Many customers are now stranded as their funds are effectively stranded due to the sudden outage.
In light of the recent news, TrueUSD immediately announced that “it is not affected by the situation” in Prime Trust. TrueUSD emphasized that it has diversified its partnerships and maintained “multiple dollar rails” elsewhere. The announcement read:
“PrimeTrust has suspended all deposits of fiat and digital assets. #TrueUSD (#TUSD) is not affected by this situation. We are not affiliated with Prime Trust and maintain a few US dollars for minting and redemption. Rest assured all your funds are safe with TUSD.”
Prime Trust is a high-tech trust company that provides a range of services to digital asset companies. Its offerings include token and fiat money storage, funds processing, anti-money laundering and Know Your Customer compliance, and transaction technology solutions. The company plays a critical role in supporting the cryptocurrency ecosystem.
Related: BitGo Stops Acquisition of Prime Trust
Early on June 10, TUSD experienced a deviation from its dollar peg due to a temporary halt in minting activities assisted by Prime Trust, TUSD’s technology partner. According to CoinMarketCap, the crash caused the value of TUSD to drop to its lowest point of $0.9964.
TrueUSD said it had rectified the situation by reassuring its users that while the minting process through Prime Trust has been temporarily suspended, other banking partnerships for minting and redeeming TUSD services remain in place. At press time, TUSD is trading at $1 with an estimated market capitalization of $3.1 billion, data from CoinMarketCap confirms.