Risk Factors for TUSD
- !Prime Trust insolvency in 2023 caused reserve shortfalls, temporary de-peg, and minting halts
- !Market cap declined from $3B+ to under $500M — significant loss of confidence
- !Current custodian banking relationships are less transparent than Circle or Paxos
- !Chainlink PoR only verifies reserves exist — does not verify quality or liquidity of reserves
- !TrustToken/Archblock corporate structure is opaque compared to US-regulated peers
- !Limited DeFi protocol integrations remain after 2023 trust events
Peg Stability
TUSD maintains its $1.00 peg through its Fiat-Backed mechanism. Monitor real-time peg deviations using the BTC.PH Depeg Monitor.
Risk Mitigation Tips
- +Diversify across multiple stablecoins — never hold all funds in a single issuer
- +Monitor reserve attestations and audit reports published by TrustToken / Archblock
- +Use hardware wallets for self-custody to eliminate exchange counterparty risk
- +Set price alerts below $0.995 to react quickly if TUSD begins to de-peg
- +Only deploy into yield strategies you fully understand — complexity multiplies risk