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On June 22, TrueUSD announced on Twitter that its TUSD stablecoin had “no exposure” to the troubled Prime Trust, which is reportedly facing regulatory challenges.
Following an order from state financial regulators, the Nevada-based Prime Trust reportedly abruptly halted all fiat and cryptocurrency deposits and withdrawals. Numerous clients now find themselves in a predicament, with their funds effectively stranded due to the sudden disruption.
In light of the recent news, TrueUSD promptly announced that “it is not affected by the situation” at Prime Trust. TrueUSD emphasized that it had diversified its partnerships and maintained “multiple USD rails” elsewhere. The announcement read:
“PrimeTrust has suspended all deposits of fiat and digital assets. #TrueUSD (#TUSD) is not affected by this situation. We have no exposure to Prime Trust and maintain multiple USD rails for minting and redemption. Rest assured, all your funds are safe with TUSD.”
Prime Trust is a technology-driven trust company that provides a range of services to digital asset companies. Its offerings encompass token and fiat custody, funds processing, Anti-Money Laundering compliance and Know Your Customer regulations, and transaction technology solutions. The company plays a crucial role in supporting the cryptocurrency ecosystem.
Related: BitGo terminates acquisition of Prime Trust
In the early hours of June 10, TUSD experienced a deviation from its dollar peg due to a temporary halt in minting activities facilitated by Prime Trust, which is TUSD’s technology partner. The disruption caused TUSD’s value to drop to its lowest point at $0.9964, as reported by CoinMarketCap.
TrueUSD said it addressed the situation, assuring its users that while the minting process through Prime Trust was temporarily paused, other banking partnerships for TUSD minting and redemption services remained unaffected. At the time of publication, TUSD is trading at $1, with an estimated market cap of $3.1 billion, data from CoinMarketCap confirmed.
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