<\/p>\n
The credit rating agency says information about the stablecoin’s composition is scarce, and governance doesn\u2019t have clear guidance.<\/p>\n
Credit rating agency S&P Global Ratings assigned TrueUSD (TUSD<\/a>) its lowest possible score, concluding that the stablecoin\u2019s ability to maintain its dollar peg is unlikely. S&P Global Ratings gave TUSD’s ability to remain at $1 a score of 5 on a 1-5 scale, where 1 is \u201cvery strong,\u201d and 5 is \u201cweak.\u201d <\/p>\n In its assessment<\/a>, published on Nov. 14, the credit rating agency noted that TUSD issuer Techteryx \u2014 which bought TUSD in December 2020 from ArchBlock, and has been publicly connected to TRON founder Justin Sun \u2014 had most of the stablecoin\u2019s reserves held by a single custodian, First Digital Trust Ltd. (FDTL). <\/p>\n S&P Global Ratings\u2019 assessment was published just a day after reports surfaced that a Dubai court had issued a global freeze on nearly half a billion dollars in TUSD reserves, as part of ongoing legal dispute. <\/p>\n Court filings by Techteryx in Dubai show<\/a> that around $456 million of TUSD\u2019s reserves, on Techteryx\u2019s own instructions, were sent for investment purposes in multiple payments between June\u202f2021 and March\u202f2022 to Aria Commodities DMCC, a Dubai trade firm.<\/p>\n But the court found that Aria DMCC \u201chas been unable to show precisely how the money was used, what assets were purchased or what became of them.\u201d To recover the funds, Techteryx has launched legal action against Aria and several regional banks.<\/p>\nBattle Over TUSD Reserves<\/h2>\n