TrueUSD Says TUSD Stablecoin Has ‘No Exposure’ to Embattled Prime Trust

Stablecoin task TrueUSD said Thursday it had “no exposure” to embattled crypto services institution Prime Trust arsenic it raced to enactment up assurance successful its dollar-backed TUSD.

Nevada-based Prime Trust connected Thursday unopen disconnected each fiat and crypto deposits and withdrawals pursuing an bid from authorities fiscal regulators, according to aggregate clients whose wealth is present stranded.

TrueUSD has said it nary longer uses Prime Trust to mint oregon redeem the TUSD stablecoin and maintains “multiple USD rails” elsewhere. The usually unchangeable plus has fallen arsenic debased arsenic $0.995 and climbed arsenic precocious arsenic $1.003 since June 9, erstwhile Prime Trust’s fiscal situation began to deepen.

That volatility has rocked usually quiescent indebtedness markets for TUSD, particularly connected Aave v-2, the largest on-chain lending installation for TUSD. At property time, the adaptable get complaint for TUSD was implicit 30% APR; it was adjacent higher earlier successful the day, according to Parsec.

The hefty rates were not dissuading traders betting that TUSD could depeg successful large fashion. Less than an hr earlier TrueUSD’s statement, 1 trader placed what amounted to a multi-million dollar abbreviated connected TUSD by borrowing $2 cardinal successful the stablecoin against $2.5 cardinal successful USDC collateral.