TrueUSD Aims to Resume TUSD Minting on Prime Trust Amidst Market Uncertainty
Stablecoin issuer TrueUSD recently made an announcement regarding its plans to resume the minting of TUSD on Prime Trust, a move aimed at ensuring a seamless experience for its users. This decision comes after a temporary halt in TUSD minting through Prime Trust, which was announced on June 10 via TrueUSD’s official social media channels.
The initial launch of TUSD minting on Prime Trust had coincided with rumors surrounding the financial troubles and potential sale of TrueUSD to BitGo, a crypto custody company. While BitGo had indeed expressed interest in acquiring Prime Trust, the deal is still in its early stages and awaits regulatory approval. Financial terms of the agreement have not been disclosed. BitGo later confirmed the signing of an agreement of intent to acquire Prime Core Technologies, the parent company of Prime Trust, through a blog post.
The market witnessed a significant drop in TUSD’s stability due to the announcement of the mining moratorium through Prime Trust and the impact of SEC lawsuits against various crypto companies.
Previously, TrueUSD gained prominence as Binance’s alternative after the BUSD crash. BUSD, Binance’s stablecoin, faced legal action from the SEC, resulting in Paxos being ordered to halt the issuance of BUSD starting from February 2023. Binance subsequently promoted TUSD, offering free Bitcoin trading exclusively for stablecoin pairings.
The widespread banking crisis and increased regulatory scrutiny have posed significant threats to stablecoin prices, underscoring the urgent need for stablecoin regulations.
During a recent hearing on the future of digital assets held by the US House of Representatives, the CEO of Circle, a leading cryptocurrency company, emphasized the importance of a stablecoin bill as a crucial piece of legislation. He highlighted that it should serve as the initial step in establishing a comprehensive regulatory framework, fostering conditions for a secure and thriving digital asset market.
The implications of the stablecoin bill extend beyond the digital asset market, shaping the global role of the US dollar. Its enactment would enable enhanced access to the dollar, while ensuring security and competitiveness in the digital currency age.
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