Summary
- TrueUSD (TUSD) announced a pause in its minting process through crypto custodian Prime Trust.
- This poses a new set of challenges for Binance, who had just recently started supporting TUSD.
- Despite the pause in minting, TrueUSD assured users that services for TUSD redemption and transactions will continue to operate without any disruptions.
Binance Faces New Crisis as TrueUSD Minting Paused
Binance, the world’s largest cryptocurrency exchange faces yet another crisis as TrueUSD (TUSD) has announced a pause in its minting process through crypto custodian Prime Trust. This comes less than a week after the US Securities and Exchange Commission (SEC) charged Binance and CEO Changpeng “CZ” Zhao with securities fraud.
Details of Pause in Minting Process
TrueUSD revealed on June 10 that the minting of TUSD via Prime Trust has been temporarily halted. This presents a new set of challenges for Binance, as the exchange had recently started supporting TUSD after the SEC ordered Paxos to cease minting Binance USD (BUSD) stablecoin. Despite the pause in minting, TrueUSD assured users that services for TUSD redemption and transactions will continue to operate without any disruptions. The company also emphasized that their partnerships with other banking institutions remain intact, ensuring a seamless experience for TUSD holders.
Current Supply of Tokens and Reserves
The majority of TUSD reserves are held in Prime Trust, alongside First Digital, Capital Union, Manual, and BitGo. As per the real-time reserve balance sheet, the current supply of TUSD stands at 2.50 billion tokens with USD-denominated collateral held in accounts totaling $2.08 billion. To reassure investors about Prime Trust’s solvency amidst these rumors of insolvency surrounding it, crypto custodian BitGo stepped up to provide support by offering secure storage solutions for all customers using their platform .
Implications For Crypto Market
>The news regarding this halt has resulted in uncertainty among traders causing many cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), etc., to plunge across exchanges worldwide including Binance itself which dropped over 9% due to this announcement. While there is no clear indication on when or if this pause will be lifted or how it would impact prices moving forward but one thing is certain – Binance needs to act fast if it wants to make sure its reputation remains intact while dealing with yet another challenge from regulators.