TrueUSD (TUSD), a stablecoin pegged to the US dollar, announced on Twitter that it is pausing its minting service until further notice, through one of its banking partners, Prime Trust.
TUSD is a product of TrustToken, a platform that tokenizes real-world assets. With over 2 billion coins in circulation, it is one of the largest stablecoins by market cap. Available on more than 100 exchanges and 160 markets worldwide.
The company has assured its users that its minting and cashback services through other banking partners are unaffected and will continue to operate as usual. He also said that his reserves are fully backed by US dollars held in escrow accounts, which can be verified in real time on his website.
The company thanked its users for their continued support and announced that it is committed to providing a reliable and efficient service for all their TUSD needs.
The announcement comes amid rumors that Nevada-based Prime Trust, which provides cryptocurrency escrow services and helps digital asset companies park cash in network banks, is facing bankruptcy due to cash crunch and regulatory pressure.
According to various sources, Prime Trust has been trying to raise as much as $25 million in emergency funds in recent weeks and has signed a preliminary agreement to be acquired by BitGo, a digital asset platform and rival custodian.
*Not investment advice.