A recent reserve report of TrueUSD (TUSD) stablecoin revealed that a small amount of funds, worth $26,434, were held at a U.S. depository institution which had been ordered to halt deposits and withdrawals for fiat and digital asset accounts. According to attestation provider The Network Firm, $26,269 of the funds “relate to customer withdrawals for redeemed tokens.” The Network Firm did not specify the U.S. institutions where the funds were held.
TUSD issuer had previously stated that it had “no exposure” to the imploded crypto custodian Prime Trust, which acted as the stablecoin’s banking partner in the U.S. The issuer paused minting tokens via Prime Trust on June 10, adding that “minting and redemptions services remain unaffected” through other banking rails.
TUSD is the fifth largest dollar-pegged stablecoin with a $3.1 billion market capitalization, and a key piece of infrastructure for crypto market liquidity as the new favored stablecoin trading pair on crypto exchange Binance. The token’s intellectual property was acquired by a little-known Asian investor called Techteryx, while Archblock acts as an agent to manage the stablecoin.