Stablecoin TrueUSD Sees Value Shift Amid Suspension of Minting Activities

TrueUSD (TUSD) experienced a deviation from its fixed price with the dollar, following an interruption in the minting process managed by technology partner, Prime Trust. The dip occurred on the morning of June 10th.

The stablecoin, which ranks fifth according to the stablecoin market cap, witnessed its lowest trading point at $0.9964.

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At the time of writing, on June 12th, TrueUSD has also recovered its dollar peg, as it currently retails for $0.9995.

This depreciation closely trails TrueUSD's declaration that issuance of TUSD via Prime Trust is on hold for the foreseeable future. According to the company, the minting and redemption processes with other banking associates remain unaffected.

We want to assure you that our partnerships with other banking institutions remain intact, allowing for seamless transactions.

Over the past year, the stablecoin has consistently slipped from its one-to-one pegging with the US dollar.

The cause behind the minting suspension remains uncertain, though speculations suggest links to insolvency allegations against Prime Trust.

The Nevada-based fintech infrastructure provider cut its workforce by a third earlier this year and was a partner for Binance.US, holding its customer funds via banking partners during the US's debanking of crypto businesses.

It is worth noting that recently BitGo expressed interest in acquiring Prime Trust. On June 8th, it announced a nonbinding letter of intent to purchase the fintech provider. The acquisition will enable BitGo to extend its wealth management services through Prime Trust's payment channels and cryptocurrency IRA funds. However, the agreement's specifics are yet to be revealed.

This prospective acquisition is unfolding at a time when the US Securities and Exchange Commission contemplates amending rules to limit the capacity of crypto companies to function as a client's custodian.