TrueUSD, a stablecoin project backed by the dollar, said it had “no exposed” to Prime Trust, a crypto services company in trouble.

Prime Trust, a Nevada-based company, shut down all deposits and withdrawals of fiat currency and cryptocurrency on Thursday following an order by the state’s financial regulators. This has left clients with money that is now stuck.

TrueUSD said that it does not use Prime Trust anymore to mint or redeem TUSD stablecoins and has “multiple USD railroads” in other places. Since June 9, when Prime Trust began to spiral into financial crisis, the usually stable asset has dropped as low as $0.995 while rising as high as $1.003.

This volatility has rocked the usually quiet TUSD loan markets, particularly on Aave v-2 – the largest on chain lending facility for TUSD. At the time of press, the variable borrowing rate for TUSD exceeded 30% APR. It was even higher earlier that day, according Parsec.

The high rates did not deter traders who bet that TUSD would depeg dramatically. One trader had a short of TUSD worth millions less than an hour prior to TrueUSD’s announcement. He borrowed $2 million from the stablecoin in exchange for $2.5 million USDC.

Nelson Wang is the editor.