In the early hours of June 10, stablecoin TruedUSD (TUSD) depreciated slightly against the dollar after stopping minting operations through its technology partner Prime Trust. TUSD is the fifth largest stablecoin by market cap and was trading at $0.9964 when the price fell the most. According to CoinMarketCap, the value of TUSD is currently $0.9964.
TUSD’s current supply is $2.04 billion, while its collateral is $2.08 billion according to data from LedgerLens.
Following the announcement from the TrueUSD team, an incident occurred and the minting of TUSD through technology partner Prime Trust has been halted until further notice. However, TUSD minting and redemption services through other banking partners are still operating normally and are not affected. TrueUSD emphasizes that partnerships with other banking institutions remain and transactions will continue to be executed seamlessly.
Stablecoins have consistently lost their peg against the USD over the past 12 months.
It has been reported that TrueUSD’s discontinuation of minting may have something to do with insolvency rumors surrounding financial technology company Prime Trust. Prime Trust is a fintech infrastructure provider based in Nevada, USA. The company laid off a third of its staff in January and acted as a middleman for Binance.US, a cryptocurrency exchange, to hold customer funds through banking partners.