TrueUSD Says TUSD Stablecoin Has ‘No Exposure’ to Embattled Prime Trust

Traders are still making multi-million dollar bets on a depeg, however.

AccessTimeIconJun 22, 2023 at 4:37 p.m. UTC
Updated Jun 23, 2023 at 3:56 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Stablecoin project TrueUSD said Thursday it had “no exposure” to embattled crypto services company Prime Trust as it raced to shore up confidence in its dollar-backed TUSD.

Nevada-based Prime Trust on Thursday shut off all fiat and crypto deposits and withdrawals following an order from state financial regulators, according to multiple clients whose money is now stranded.

TrueUSD has said it no longer uses Prime Trust to mint or redeem the TUSD stablecoin and maintains “multiple USD rails” elsewhere. The usually stable asset has fallen as low as $0.995 and climbed as high as $1.003 since June 9, when Prime Trust’s financial crisis began to deepen.

That volatility has rocked usually quiet 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; it was even higher earlier in the day, according to Parsec.

The hefty rates were not dissuading traders 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.

Edited by Nelson Wang.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Danny Nelson

Danny is CoinDesk's Managing Editor for Data & Tokens. He owns BTC, ETH and SOL.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.