TrueUSD, issuer of TUSD, has paused minting of the stablecoin through Prime Trust until further notice. It can still be minted and redeemed through other financial services.
Las Vegas, Nevada-based Prime Trust is currently in the works of being acquired. BitGo Holdings said it has signed a non-binding term sheet to acquire 100% of the equity of Prime Core Technologies, the parent company of crypto custodian Prime Trust. BitGo said the deal would bring business continuity and long-term stability to the financial firm's clients.
The TUSD stablecoin has peaked in popularity since getting adopted by Binance, in the wake of regulatory trouble for its associated BUSD stablecoin. The Bitcoin:TUSD trading pair is currently the highest pair on Binance by trading volume. That said, its $2 billion market cap is still small compared to major stablecoins like USDT and USDC.
Stablecoins are kept to their pegs through a minting and redemption process. If the price is above peg, large holders can directly swap dollars for the stablecoin and sell on the open market. Conversely, if the price goes below the peg, such entities can buy the stablecoin on the open market and redeem it directly. Yet these require financial partners like Prime Trust, who can handle the fiat payments.
Prime Trust offers various developer tools and APIs to crypto companies, including for custody, payment rails, compliance, liquidity and settlement.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.