TrueUSD maintains it has no exposure to Prime Trust despite community claims TrueUSD maintains it has no exposure to Prime Trust despite community claims
Adam Cochran questioned if TUSD minting and redemption is still available - the company states services remain open via other rails.
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Updated: Jun. 23, 2023 at 11:27 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
TrueUSD (TUSD) stated in a June 22 Twitter post that it is not affected by the issues faced by crypto custodial firm Prime Trust.
Prime Trust was forced to suspend all deposits of fiat and digital assets by Nevada financial regulators on June 21 because it failed to safeguard assets under its custody and could not fulfill client withdrawals.
Stablecoin firm Stably temporarily stopped minting and redeeming its Stably USD (USDS) on four blockchain networks as a result.
TUSD said it maintains multiple U.S. dollar rails to mint and redeem its stablecoins – reiterating that it had no exposure to the embattled crypto custodian. The firm added:
“This means that alternative TUSD minting and redemption processes are live and available on these USD rails.”
Contradictory TUSD emails
Probing the situation, Adam Cochran, a partner at Cinneamhain Ventures, called on market makers and OTC operators for feedback on whether they can mint or redeem TUSD. Cochran offered a $1,000 bounty to incentivize a response.
Joining Cochran’s thread, a TUSD user shared screenshots of an email from TUSD informing of a suspension of minting and redemption services following the Prime trust saga.
TUSD stated that it had paused minting via Prime Trust for over ten days, adding that it maintains other payment rails with new banking partners.
When pressed about the new rails, the firm asked Cochran to email its support team.
TUSD did not respond to CryptoSlate’s request for comment as of press time.
Curve pool imbalance
Meanwhile, the TUSD has become imbalanced on Curve Pool – now accounting for nearly 62% of the $7.5 million reserves – with crypto traders showing a preference for other stablecoins, such as DAI, USDC, and USDT.
Furthermore. the stablecoin has slightly deviated from its dollar peg, trading at $0.9996 as of press time, according to CoinMarketCap data.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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TrueUSD, a USD-backed stablecoin you can exchange and trust.
Tether
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Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
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USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.