Stablecoin issuer TrueUSD has confirmed that it is not affected by the current regulatory challenges facing Prime Trust. Following an order from state financial regulators, the Nevada-based Prime Trust abruptly halted all fiat and cryptocurrency deposits and withdrawals, leaving numerous clients with their funds effectively stranded. In response, TrueUSD announced on Twitter that its TUSD stablecoin had “no exposure” to Prime Trust and emphasized that it had diversified its partnerships and maintained “multiple USD rails” elsewhere for minting and redemption.
TrueUSD previously experienced a deviation from its dollar peg due to a temporary halt in minting activities facilitated by Prime Trust, which is TUSD’s technology partner. However, the disruption was addressed, and other banking partnerships for TUSD minting and redemption services remained unaffected. At the time of publication, TUSD is trading at $1, with an estimated market cap of $3.1 billion.
Overall importance
TrueUSD’s statement provides reassurance to its users that their funds are safe despite the challenges facing Prime Trust. It also highlights the importance of diversifying partnerships to mitigate risks in the volatile cryptocurrency ecosystem. The incident underscores the need for robust regulatory frameworks to protect consumers and promote stability in the industry.