The TUSD stablecoins issuer confirmed to the users that it had no exposure to Prime Trust and that all funds are safe.
After the acquisition failure of Prime Trust, a fintech and digital assets infrastructure provider, by BitGo earlier this month, the troubles facing the Nevada-based firm resulted in the closure of withdrawals and deposits. As a result, all Prime Trust customers are currently stranded without much to do. However, TrueUSD (TUSD) stablecoin team has reassured its users that all funds are safe as it was never exposed financially. In this regard, the TUSD remains highly liquid and all tokens redeemable to the United States dollar in a ratio of 1:1.
TrueUSD reassured its users that it will continue to be a reliable partner in the crypto space. On June 10, TrueUSD announced that TUSD minting via the Prime Trust protocol would not be available. The announcement has, however, brought confusion after crypto enthusiast Adam Cochran revealed that the company has been sending users a different message.
So TUSD said no exposure to Prime Trust but sends users this email, saying no more mint and redeem due to Prime Trust.
Nevada regulators believe Prime Trust was insolvent and unable to meet user deposits… pic.twitter.com/dww3dqFiea
— Adam Cochran (adamscochran.eth) (@adamscochran) June 22, 2023
In response, TrueUSD referred Twitter users to its customer support thus raising more eyebrows. Notably, Cochran urged Binance to stop using TUSD and promote stablecoin with fee-free trading. Nonetheless, the TrueUSD stablecoins continue to trade normally pegged to the United States dollar. Moreover, the company reassured users that its other banking partners are operating as usual with the minting process unaffected.
“TUSD minting and redemption services remain unaffected and will continue to operate as usual. We want to assure you that our partnerships with other banking institutions remain intact, allowing for seamless transactions,” the company noted.
TrueUSD (TUSD) and the Crypto Market Outlook
According to the latest crypto market data provided by Binance-backed Coinmarketcap, TrueUSD (TUSD) had a total market capitalization of about $3,141,492,559 and a 24-hour trading volume of approximately $2.6 billion. The TrueUSD (TUSD) stablecoin is available on several top chains including Ethereum, TRON, Avalanche, BSC, Fantom, and Polygon. As a result, the stablecoin is available for trading on top DeFi protocols and also centralized exchanges like Binance, Bitrue, Bitget, BitMart, and Phemex.
The TrueUSD stablecoin has significantly benefited from running on the Tron network, which is the official chain in Dominica. Moreover, the Tron crypto-based assets have achieved more utility and regulatory clarity in the region through Dominica.
The use of stablecoins in the crypto market is of huge importance, particularly during extreme volatility periods. However, governments around the world have stepped in to regulate the industry following the collapse of Terra UST, which wiped out more than $30 billion from the market. As a result, most countries are in the process of introducing their central bank digital currency (CBDC) to help in safe digital market adoption.
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