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The stablecoin TrueUSD (TUSD) lost some of its dollar peg in the early hours of June 10 after a pause in mining through its technology partner Prime Trust.
The fifth-largest stablecoin by market capitalization traded at $0.9964 at its deepest point. Its value is $0.9981 as of this writing, according to CoinMarketCap. According to LedgerLens, the current supply of TUSD is $2.04 billion and its collateral is $2.08 billion.
Announcement:
TUSD mints via Prime Trust are paused for further notification.
Thanks for your understanding and we are sorry for any inconvenience. Please contact support@trueusd.com for any further questions.
— TrueUSD (@tusdio) June 10, 2023
The recent depeg follows the TrueUSD team’s announcement that TUSD minting through Prime Trust has been suspended until further notice. TUSD minting and redemption services through other banking partners remain in effect. “We want 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 peg to the US dollar over the past 12 months.
It is not clear if the minting halt is related to the recent rumors that the Prime Trust is insolvent. The Nevada-based fintech infrastructure provider laid off a third of its staff in January. He also acted as an intermediary for Binance. US holding funds of its clients through banking partners amid the debanking of the cryptocurrency business in the United States.
Prime Trust will be acquired as a deal is in development with cryptocurrency custodian BitGo. According to a June 8 announcement, BitGo has signed a non-binding letter of intent to acquire the company. As part of the deal, BitGo will acquire Prime Trust payment processors and a cryptocurrency IRA fund, allowing it to expand its asset management services. The terms of the agreement were not disclosed.
The potential acquisition comes as the U.S. Securities and Exchange Commission is proposing to change rules that limit the ability of crypto companies to act as custodians of customers.