- Services for minting and redeeming TUSD via alternative banking partners not interrupted.
- Prime Trust is being acquired by BitGo, a cryptocurrency custodian.
After a brief interruption in minting activity via its technological partner Prime Trust, the stablecoin TrueUSD (TUSD) lost its dollar peg in the early hours of June 10.
At its lowest in the last 24 hours, the market price of the fifth most valuable stablecoin by capitalization was $0.9958. Its current worth, as reported by CMC, is $0.9979. According to statistics provided by LedgerLens, the current supply of TUSD is $2.04 billion, while the collateral is valued at $2.08 billion.
Following a statement from TrueUSD, which said that the minting of TUSD through Prime Trust has been suspended until further notice, a depeg was witnessed recently. Services for minting and redeeming TUSD via alternative banking partners have not been interrupted.
The announcement read:
“We want to assure you that our partnerships with other banking institutions remain intact, allowing for seamless transactions.”
BitGo to Acquire Prime Trust
In the last year, the stablecoin has regularly devalued from its initial $1 USD peg. The latest rumors about Prime Trust’s bankruptcy may or may not be connected to the suspension of minting. A third of the workforce at the Nevada-based fintech infrastructure firm was let go in January.
It also served as a go-between for Binance.US. Keeping its customers’ money in banks with whom it has partnered in light of the debanking of crypto firms there. Prime Trust is being acquired by BitGo, a cryptocurrency custodian. BitGo reportedly signed a nonbinding letter of intent to purchase the firm on June 8th, per an announcement.
Moreover, BitGo will be able to broaden its wealth management offerings by acquiring Prime Trust’s payment rails and crypto IRA fund. The details of the deal were kept confidential. The possible purchase coincides with proposed regulatory changes by the U.S. Securities and Exchange Commission that would restrict the ability of crypto businesses to operate as a customer’s custodian.
