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Neutrl pauses NUSD minting and redemptions after reserve issue
Neutrl said it has halted related protocol functions on legal advice and has not disclosed the affected counterparty, asset, or timeline for resuming.
Decentralized finance protocol Neutrl has suspended minting and redemptions for its NUSD synthetic dollar after unspecified circumstances affected protocol reserves, leaving the cause and potential impact unclear. Neutrl also said it paused other protocol functions on legal advice while it assesses how much, if any, its reserves are impaired.
The protocol did not identify the affected asset or counterparty, whether any realized loss occurred, or when operations might restart. It said it will share timing and next steps when available, after contacting for comment did not receive a response by publication, according to Cointelegraph.
With about $53.6 million in NUSD in circulation, the suspension blocks approved counterparties from exchanging the token for its backing assets while the reserve review continues. Cointelegraph reports that Structured-yield protocol Strata later said it also paused minting, redemptions, and related functions for contracts in its Neutrl market, while Strata said its other markets remained operational.
RWA.xyz data cited by Cointelegraph showed NUSD market capitalization at about $53.6 million on Friday, down 18.4% over 30 days, and monthly transfer volume falling 72.4% to $71.4 million. The same dataset showed NUSD trading around $0.9984, with 615 holders and 347 active addresses over the prior 30 days, though Cointelegraph notes the data does not confirm the earlier contraction was tied to the reserve issue.