TrueUSD Stablecoin Unaffected by Prime Trust: Funds Secure

TrueUSD Stablecoin Unaffected by Prime Trust: Funds Secure
TrueUSD, a leading stablecoin provider, stated on Twitter that its TUSD stablecoin remains unaffected by the regulatory challenges faced by Prime Trust, a Nevada-based financial institution.

Following an order from state financial regulators, Prime Trust abruptly halted all fiat and cryptocurrency deposits and withdrawals, leaving numerous clients in a predicament as their funds are effectively stranded due to the sudden disruption.

In response to this development, TrueUSD promptly reassured its users that it has no exposure to the situation at Prime Trust. The company highlighted its diversified partnerships and emphasized that it maintains multiple USD rails for minting and redemption purposes. The announcement by TrueUSD 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, a technology-driven trust company, offers a comprehensive range of services to digital asset companies, including token and fiat custody, funds processing, compliance with Anti-Money Laundering regulations and Know Your Customer requirements, as well as transaction technology solutions. The company plays a crucial role in supporting the cryptocurrency ecosystem.

Earlier this month, on June 10, TUSD experienced a deviation from its dollar peg due to a temporary halt in minting activities facilitated by Prime Trust, its technology partner. CoinMarketCap reported that this disruption caused TUSD's value to drop to its lowest point at $0.9964.

TrueUSD promptly addressed the situation, assuring its users that although the minting process through Prime Trust was temporarily paused, other banking partnerships for TUSD minting and redemption services remained unaffected. According to data from CoinMarketCap, TUSD is currently trading at $1, with an estimated market cap of $3.1 billion.

Previous Next

This information is for educational purposes only and does not constitute investment advice. No person should rely on it to make any investment. Investing carries risks, including the loss of capital. All opinions expressed are subject to change without notice. Past performance is not indicative of future results. Always seek the advice of a licensed investment professional before making any investment.