Neutrl Halts NUSD Redemptions Amid Reserve Recalibration

The protocol’s dashboard, which previously reported a $1 million surplus against $90 million in assets, currently provides no details on capital allocation. Instead, sections regarding solvency and reserve deployment state that figures are being recalibrated. While Neutrl has not specified the nature of the issue—whether it involves liquidity gaps, valuation errors, or realized losses—the suspension effectively traps capital for holders who rely on direct redemption channels.

Despite the operational freeze, NUSD has maintained a trading price near $0.998 on secondary markets, though liquidity remains thin. On-chain data from Curve shows the primary NUSD-USDC pool holding approximately $3.54 million, a significant decline from earlier this year. Strata Markets has also moved to restrict products tied to the token, halting minting and redemptions for its srNUSD and jrNUSD tranches. As a synthetic dollar product targeting non-U.S. investors, NUSD lacks the bankruptcy protections or one-to-one reserve requirements mandated for regulated payment stablecoins under emerging U.S. frameworks like the GENIUS Act.