On June 10, renowned stablecoin TrueUSD (TUSD) has lost its U.S. dollar peg after announcing a pause on TUSD minting activities via Prime Trust, the stablecoin issuer’s technology partner.

The TrueUSD team announced that TUSD minting on Prime Trust is temporarily halted until further notice, also reaffirming traders that TUSD’s “partnerships with other banking institutions remain intact, allowing for seamless transactions.”

Regarded as the fifth largest stablecoin by market capitalization, the behemothic stablecoin traded at $0.9964 as its lowest point, according to CoinMarketCap data. At the time of writing, the value of TUSD barely surpasses the $0.998 mark.

Over the past 12 months, CoinMarketCap data shows that the stablecoin has lost its peg to the dollar greenback repeatedly, with the most major price spikes occurring in March and early May. It remains unclear to market participants and speculators as to whether the decision to pause minting activity is linked to recent rumors of insolvency surrounding Prime Trust.

A Nevada-based fintech infrastructure firm, Prime Trust let go of a third of its staff in January of this year, and has also taken part in acting as a middle man for under-fire Binance.US by holding the exchange’s customer funds with banking partners.

Sources:

https://cointelegraph.com/news/tusd-stops-minting-via-prime-trust-loses-dollar-peg

https://beincrypto.com/stablecoin-trueusd-loses-pegs-wreaking-havoc-in-the-crypto-market/

https://twitter.com/tusdio/status/1667386940948369408

https://blockworks.co/news/tusd-depegs-binance

https://coinmarketcap.com/currencies/trueusd/