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- Minting and redeeming services for TUSD through alternative banking partners remain unaffected.
- BitGo is in the process of acquiring Prime Trust, a cryptocurrency custodian.
Following a temporary halt in minting operations through its technology partner Prime Trust, the stablecoin TrueUSD (TUSD) experienced a loss of its dollar peg during the early hours of June 10.
At its lowest point in the past 24 hours, the market value of the fifth largest stablecoin by market capitalization dropped to $0.9958. Currently, its value, as reported by CMC, stands at $0.9979. Data from LedgerLens indicates that the existing supply of TUSD is $2.04 billion, while the collateral is estimated at $2.08 billion.
In light of a statement from TrueUSD, which indicated that minting of TUSD through Prime Trust has been paused until further notice, a depeg was observed recently. However, minting and redeeming services for TUSD via alternative banking partners have not been disrupted.
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The announcement stated:
“We want to assure you that our partnerships with other banking institutions remain intact, allowing for seamless transactions.”
BitGo to Acquire Prime Trust
Over the past year, the stablecoin has frequently deviated from its original $1 USD peg. Recent speculation regarding Prime Trust’s potential bankruptcy may or may not be linked to the minting suspension. In January, a third of the workforce at the Nevada-based fintech infrastructure company was laid off.
Additionally, it acted as an intermediary for Binance.US, maintaining its clients’ funds in banks with which it has established partnerships amid the debanking of crypto firms. BitGo is set to acquire Prime Trust, a cryptocurrency custodian. According to an announcement, BitGo signed a nonbinding letter of intent to purchase the company on June 8th.
Furthermore, by acquiring Prime Trust’s payment infrastructure and crypto IRA fund, BitGo will enhance its wealth management services. The specifics of the transaction were not disclosed. This potential acquisition aligns with proposed regulatory changes by the U.S. Securities and Exchange Commission that would limit the capacity of crypto firms to function as custodians for customers.
