TrueUSD (TUSD) has stopped the minting of TUSD stablecoin tokens via fintech infrastructure provider, Prime Trust, causing a brief depegging. Recently USD informed its users via it’s Verified Twitter handle that the minting of TUSD tokens via Prime Trust had been temporarily paused until further notice.
The fifth-largest stablecoin by market capitalization traded at $0.9964 at its lowest point. its value is $0.9981 at the time of writing. The current supply of TUSD is $2.04 billion, while its collateral is $2.08 billion,.
Despite this temporary pause in minting services, TrueUSD has assured its users that the redemption services for TUSD tokens will continue to operate without interruption. It means that users can still redeem their TUSD tokens as usual.
The stablecoin startup confirmed that its partnerships with other banking institutions remain intact, enabling continued user transactions.TUSD’s announcement wasn’t immune to “repercussions,” as the stablecoin dropped below its dollar peg shortly after the revelation to trade at $0.9963.
Prime Trust is said to be purchased in a deal with Crypto custodian BitGo. in a recent announcement, BitGo signed a nonbinding letter of intent to acquire the company. With the deal, BitGo will acquire Prime Trust’s payment rails and cryptocurrency IRA fund, allowing it to expand its wealth management services. The terms of the agreement were not disclosed. The potential acquisition comes as the U.S. Securities and Exchange Commission proposes rule changes inhibiting Crypto companies ability to act as customer’s custodian