Neutrl pauses NUSD redemptions over undisclosed reserve issue
Neutrl has suspended minting and redemptions for its NUSD synthetic dollar after unspecified circumstances affected protocol reserves. It also paused other protocol functions on legal advice while it assesses whether reserves were impaired. The protocol has not disclosed the affected asset, counterparty, whether losses were realized, or when operations may resume. Strata later paused minting, redemptions, and related functions for contracts in its Neutrl market, while keeping other markets open. About $53.6 million of NUSD is in circulation, so the suspension blocks approved counterparties from exchanging NUSD for backing assets during the review. RWA.xyz data shows NUSD’s market cap fell 18.4% over 30 days and monthly transfer volume dropped 72.4%, though the link to the reserve issue is unclear. NUSD is meant to track the dollar using yield-bearing crypto assets and market-neutral strategies, not bank deposits.
