TrueUSD Now Stops Minting TUSD Through Prime Trust
- TrueUSD has temporarily stopped minting TUSD through Prime Trust pending further notice.
- According to previous news, crypto custody company BitGo will acquire Prime Trust, and the two parties have signed an agreement of intent to invest.
TrueUSD officially announced that it has temporarily stopped minting TUSD through Prime Trust, pending further notice.
According to previous news, the crypto custody company BitGo will acquire Prime Trust, another crypto custody company regulated by Nevada, and the two parties have signed an investment intention agreement.
The deal is said to be at a preliminary stage and still subject to regulatory approval. The sources did not disclose the financial terms of the deal. BitGo then confirmed in a blog post that it had signed an agreement of intent to acquire Prime Core Technologies, the parent company of Prime Trust.
TrueUSD (TUSD) is a stablecoin similar to USDT, BUSD, and USDC. This is a stablecoin fully backed by US dollars.
TrueUSD was released in 2018 with the aim of becoming a transparent and trustworthy stablecoin. For that reason, TUSD does not use any collateral or use any algorithms.
The collateral for TUSD is evenly distributed in different bank accounts belonging to different trust companies; the parties involved have all signed a collateral disclosure agreement that is updated on a daily basis and will be audited monthly. The number of tokens will be used multiple escrow assets to limit the risk for the counterparty and provide holders with legal protection against theft.
Prior to that, TrueUSD was a product of TrustToken company founded in 2017 that specializes in providing blockchain solutions and is overseen by leading funds.
Earlier, the SEC released a notice about the New York Department of Financial Services (NYDFS) asking the issuer of BUSD, Paxos Trust to stop creating new BUSD coins completely.
This ban forced Binance to look for alternative methods to meet its demand for stablecoins. Specifically, the exchange is looking to integrate the TrueUSD contract, along with adding support for several decentralized stablecoins.
It is during the current market crisis due to the increasing tension between the SEC and Binance that a lot of interest is pouring into the largest exchange at the moment and the companies associated with it.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu