After BUSD, the TrueUSD (TUSD) token, which seems to be backed by the cryptocurrency exchange Binance, has released a report on its reserves.
He suspected that some of TrueUSD's reserves remained in the Prime Trust, which was on the verge of bankruptcy.
TUSD Remains Extremely Low on Prime Trust According to Reports
A June 23 review by audit provider The Network Firm revealed that $26,434 worth of TUSD backing assets are “held at a US custodian, which has informed clients that the agency has been instructed by state regulators to cease deposits and withdrawals for fiat and digital asset accounts.” .
The statement said that $26,269 of the funds were “related to customers' withdrawals for reclaimed tokens.”
However, the TUSD issuer has previously said that its stablecoin is “not exposed” to the bankrupt crypto custodian Prime Trust, which acts as its banking partner in the US.
The issuer tweeted on June 10 that it had stopped issuing tokens through Prime Trust, adding that “monetization and reimbursement services were not affected” through other banking channels.
Cryptocurrency exchange Binance is known for its zero commission practices on TUSD trading pairs. The printing of new BUSD was stopped after Paxos, the distributor of the BUSD stablecoin that the platform previously used for this purpose, was sued by the SEC.
*Not investment advice.