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TrueUSD's Official Statement on its Ties with Prime Trust
Stablecoin creator TrueUSD asserts its independence and lack of impact from the ongoing difficulties encountered by Prime Trust.
On June 22, TrueUSD took to Twitter to declare that its TUSD stablecoin had “zero exposure” to the turbulence hitting Prime Trust, which is reportedly grappling with regulatory issues.
The Prime Trust Dilemma and Its Impact on Clients
Following an injunction from state financial authorities, the Nevada-based Prime Trust has purportedly stopped all fiat and cryptocurrency deposits and withdrawals unexpectedly. This abrupt change has left numerous clients in a difficult situation, as their assets are effectively immobilized due to this sudden interruption.
TrueUSD: Independent and Unaffected by Prime Trust's Situation
Responding quickly to the recent developments, TrueUSD assured stakeholders that it remains untouched by the complications at Prime Trust. TrueUSD stressed its diversified affiliations and the existence of “multiple USD routes” beyond Prime Trust. The announcement stated:
“Prime Trust has put a hold on all fiat and digital asset deposits. #TrueUSD (#TUSD) remains unaffected by this situation. We have no connections to Prime Trust and maintain multiple USD paths for minting and redemption. Be confident, all your funds are secure with TUSD.”
The Role of Prime Trust in the Cryptocurrency Ecosystem
Prime Trust operates as a tech-forward trust firm, offering a variety of services to companies dealing in digital assets. Its service portfolio includes custody of tokens and fiat, funds management, adherence to Anti-Money Laundering regulations and Know Your Customer rules, along with transaction technology solutions. The firm plays a pivotal role in underpinning the cryptocurrency ecosystem.
TUSD's Recent Minting Disruption and Current Status
In the wee hours of June 10, TUSD saw a temporary departure from its dollar peg due to an unexpected halt in minting processes overseen by Prime Trust, its technology partner. This disruption triggered a dip in TUSD's value to a low of $0.9964, as tracked by CoinMarketCap.
TrueUSD reported addressing the situation, reassuring its users that while the minting process via Prime Trust was on hold temporarily, other banking collaborations for TUSD minting and redemption services remained unaffected. As of now, TUSD trades at $1, boasting an estimated market cap of $3.1 billion, according to CoinMarketCap data.
