TrueUSD has said it no longer uses Prime Trust to mint or redeem the TUSD stablecoin and maintains “multiple USD rails” elsewhere, said the Stablecoin project on Thursday. The company was racing to shore up confidence in its dollar-backed TUSD after Nevada-based Prime Trust shut off all fiat and crypto deposits and withdrawals following an order from state financial regulators.
The usually stable asset has seen some volatility since June 9, when Prime Trust’s financial crisis began to deepen. This has caused hefty rates in loan markets for TUSD, especially on Aave v-2, the largest on-chain lending facility for TUSD. At press time, the variable borrow rate for TUSD was over 30% APR.
Despite the high rates, traders were still betting that TUSD could depeg in major fashion. Less than an hour before TrueUSD’s statement, one trader placed what amounted to a multi-million dollar short on TUSD by borrowing $2 million in the stablecoin against $2.5 million in USDC collateral.
TrueUSD reassured that it had “no exposure” to the Prime Trust crisis and that it maintains “multiple USD rails” elsewhere.