TrueUSD is a fiat-collateralized stablecoin issued by the TrustToken platform that keeps USD funds in third-party escrow accounts without direct access by TrustToken. TrueUSD is an ERC-20 token issued on the Ethereum and corresponds on a 1:1 basis with US Dollars sitting in bank accounts. TrueUSD is the only stablecoin offering real-time audits.
Seeing the issues surrounding whether or not Tether was fully backed and had reliable banking relationships, Trust Token decided to created a stablecoin called TrueUSD (TUSD). Introduced mid 2018, TrueUSD is a fully collateralized stablecoin backed by U.S. Dollars, launched via the Trust Token platform as the platform's continued effort to tokenize real-world assets on their collateralized platform. Each TUSD token is backed by one dollar and was launched and distributed via a Trust Token platform smart contract. Trust Token has partnered with registered fiduciaries and banks that hold the assets backing the TUSD tokens.
In December 2019, TrueUSD became the first stablecoin to offer real time audits.
TrueUSD is a U.S. dollar stablecoin pegged to USD at 1:1. First launched to a limited investor base in January 2018, TrueUSD has since grown to incorporate almost $400 million of backed tokens as of October 2020.
TrueUSD is one of a number of cryptocurrency stablecoins administered by TrustToken, a platform for tokenizing real-world assets.
As with other stablecoins, TrueUSD aims to facilitate increased liquidity and provide cryptocurrency traders and general users with a nonvolatile asset relative to free-floating tokens such as Bitcoin (BTC).
As of October 2020, TUSD is the 38th largest cryptocurrency by market cap.
TrueUSD is a stablecoin launched by parent company TrustToken, whose co-founder and CEO is Rafael Cosman.
Cosman has a lifelong attachment to cryptography, studying it along with artificial intelligence (AI) before working at both Google Brain and software company Palantir. He left Google to create TrustToken in 2017.
Cosman has stated that TrueUSD was always just the start of TrustToken’s product line, involving relatively little work in return for creating a high-impact asset.
At the time of launch, he noted that regular auditing of the stablecoin formed an important focus for the company, giving investors peace of mind at a time when many cryptoassets were seeing heavy volatility in the wake of the initial coin offering (ICO) phenomenon.
TrueUSD aims to balance stability and utility — the main use cases of any stablecoin — with security in the form of regular attestations.
From its launch onwards, parent company TrustToken has sought to underscore the importance of independent verification of the stablecoin’s provenance. As such, the stablecoin’s appeal is geared towards larger investors looking to reduce risk, in addition to smaller private traders.
TrustToken describes TUSD as “the first regulated stablecoin fully backed by the US Dollar.”
TrueUSD is part of an ever-expanding stablecoin market, which now includes a large number of USD-backed assets. Tether (USDT) remains by far the largest, with a market cap of $15 billion as of October 2020, compared to TUSD’s $382 million.
TrustToken has entered various corporate partnerships as part of its business activities, including options for TUSD holders to increase annualized passive income returns.
There was around 381.9 million TUSD in circulation as of October 2020. Given its status as a stablecoin, the supply is uncapped, and will continue to expand according to demand.
There are two incarnations of TUSD available: an ERC-20 token on Ethereum and another, also known as TUSDB, a BEP-2 token on Binance Chain.
TrueUSD’s equivalent redeemability for USD is maintained via partnerships with banks and fiduciary entities.
TrustToken aims to deliver maximum transparency using tools such as real-time auditing of TUSD’s backing and reliability.
Beyond trusting the validity of its USD peg, any security issues relate to those which affect all ERC-20 standard tokens. Transactions, for example, can suffer from abnormally high fees if gas prices on the Ethereum blockchain spike.
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