- TUSD, the fifth-largest digital stablecoin by market capitalization, experienced a loss of its dollar peg.
- The TUSD team has declared that they are working towards resuming TUSD minting on Prime Trust.
- The stablecoin bill should be the first step in creating a regulatory framework
Following a halt in minting operations through its technological partner Prime Trust, stablecoin TrueUSD (TUSD) lost its dollar peg in the early hours of June 10.
The lowest price for the fifth-largest stablecoin by market capitalization was $0.9964. Its current worth, according to CoinMarketCap, is $0.9981. According to data from LedgerLens, the supply of TUSD is currently at $2.04 billion, while the value of its collateral is at $2.08.
Fast Resolution for Effective User-Experience
The TUSD team declared on June 13 that they were diligently working towards resuming TUSD minting on Prime Trust, demonstrating their dedication to a frictionless user experience. We recognize how crucial it is to give our users a flawless experience.
It is significant to note that TUSD minting and redemption services provided by other banking partnerships have not been harmed by the issue with Prime Trust. As stated by the team in a tweet dated June 10; these services are still available as usual.
“TUSD minting and redemption services remain unaffected and will continue to operate as usual,” the TUSD team said. He further said that he wishes to reassure the public that their collaborations with other financial institutions are still strong and enable smooth transactions.
The TUSD team has maintained a strong commitment to transparency throughout these events, keeping their user base informed on new developments and thanking them for their understanding and support. The team has additionally vowed to promptly update everyone on any new developments.
The team appreciates the community’s patience and support during this process, and they will keep users updated as soon as anything new happens. They further appreciated the confidence of users in TUSD.
Even if there has been a brief interruption in Prime Trust operations, the TUSD team’s quick actions to address and resolve the issue show their commitment to their users. The most recent debug followed a statement from TrueUSD that the minting of TUSD via Prime Trust has been suspended until further notice. Other banking partners’ services for TUSD minting and redemption are unaffected. According to the notice, they want to reassure the users that their partnerships with other banking institutions remain intact, allowing for seamless transactions.
Price Deviations for TUSD
Over the previous twelve months, the stablecoin’s peg to the US dollar has fallen often.
It is unknown if the suspension of minting is connected to recent rumors about Prime Trust’s insolvency. A third of the company’s employees were laid off in January. It is a Nevada-based provider of fintech infrastructure. Additionally, it served as a go-between for Binance, keeping client funds through banking partners as the debanking of cryptocurrency firms in the US progressed.
In an agreement with cryptocurrency custodian BitGo, Prime Trust will be bought. On June 8, it was announced that BitGo has signed a non-binding letter of intent to buy the business. With the agreement, BitGo will expand its wealth management offerings by acquiring Prime Trust’s payment rails and Bitcoin IRA fund.
The agreement’s conditions weren’t made public. The prospective acquisition occurs as the U.S. Securities and Exchange Commission suggests changing the rules to restrict the capacity of cryptocurrency companies to serve as a customer’s custodian.
Conclusion
The Circle CEO stated that the stablecoin bill is an important piece of legislation that should be the first step in creating one regulatory framework to build the conditions for a thriving and secure digital asset market during a hearing on the future of digital assets being held today by the US House of Representatives.
Beyond the market for digital assets, it will also significantly affect how the US dollar is used around the world. Access to the dollar, security, and competitiveness in the era of digital currencies will all be made possible by the stablecoin bill.