Prime Trust allegedly froze all fiat and cryptocurrency deposits and withdrawals.
TUSD deviated from its dollar peg in the early hours of June 10.
On June 22, TrueUSD tweeted that its TUSD stablecoin has “no exposure” to the ailing Prime Trust, which is allegedly encountering regulatory issues.
Prime Trust, located in Nevada, allegedly froze all fiat and cryptocurrency deposits and withdrawals. This was after receiving an order from state financial authorities. Many customers are in a bind as a result of the abrupt move, since their money is virtually trapped.
Multiple USD Rails
TrueUSD swiftly indicated, in light of the latest developments, that “it is not affected by the situation” at Prime Trust. TrueUSD highlighted its many relationships and “multiple USD rails” it maintained at multiple places.
The announcement 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 is a digital asset industry service provider that is technology oriented. Its services include a wide range of areas, including token and fiat currency storage, payment processing, AML/KYC compliance, and transaction technology solutions.
TUSD deviated from its dollar peg in the early hours of June 10 owing to a short suspension in minting operations enabled by Prime Trust, TUSD’s technological partner. Also, as per data by CMC, the disturbance led TUSD’s value to fall to a record low of $0.9964.
TrueUSD claimed it has fixed the issue and assured its customers that other banking relationships for TUSD minting and redemption services were unaffected despite the temporary suspension of the minting process via Prime Trust.