Stablecoins are digital currencies that are linked to fiat currencies or commodities. Stablecoins have historically aided merchants in maximizing trading profits by reducing the amount of time they spend dealing with traditional institutions each time they place a trade. TrueUSD is a stablecoin that is backed by the US dollar. TUSD’s tokens are backed by a variety of accounts, reducing the danger of associated hazards. Furthermore, it provides legal protection to all token holders against any form of exploitation.
It was launched by TrustToken, an asset-backed platform. It’s an ERC-20 token with a transparent collateralization system. True USD was created for the first time in 2018. The fundamental goal of this cryptocurrency was to provide its users with a reliable, stable, and simple currency.
As previously stated, the asset was created by TrustToken, a San Francisco-based exchange that specializes in asset-backed tokens that are easily exchanged around the world. TUSD, on the other hand, is the TrustToken platform’s first stablecoin.
With the goal of creating a more stable market, the team behind the TrustToken platform has made it a priority to tokenize assets such as real estate, movies, limited corporations, and other similar assets.
Rafael Cosman, co-founder and CEO of TrustToken, has ordered a monthly audit for the TUSD stablecoin. As a result, it acts as a hedge against the market’s volatility while also providing investors with a reliable and high-impact asset.
How it Works
The third-party escrow accounts are critical to the effective operation of every TrustToken tokenized asset. TrueUSD can be purchased or redeemed by anybody who passes the KYC and AML standards.
To keep themselves from issuing tokens, TrustToken uses publicly audited smart contracts. The money is never touched by the TrustToken staff. When an escrow account gets USD, new TUSD is instantly created. When a user redeems USD, an equal quantity of TUSD is immediately burnt. As a result, TrustToken assures a 1:1 USD to TUSD ratio between escrow funds and TUSD in circulation.
When a user passes the KYC/AML process, he or she can transmit USD to one of TrueUSD’s trust partners (along with Ethereum wallet address). The API then interacts with TrueUSD’s smart contract, which issues tokens in a 1:1 ratio and sends them to the supplied wallet once the funds have been validated by the escrow company.
When the tokens arrive in your wallet, you can use them for whatever you want. TrueUSD tokens combine the best of both worlds: fiat’s stability and confidence, as well as cryptocurrencies’ low costs, short transfer times, and worldwide reach.
A reverse procedure is followed if you want to convert TUSD back to US Dollars. The user returns TUSD tokens to the smart contract address, which alerts the trust corporation and initiates a fiat transfer to the user’s account.
What Makes it Unique
TrueUSD has risen to the top of the list of investment options due to the unique perks that come with its use.
TrustToken does not charge a fee for trading TUSD because it earns money on USD interests stored in customers accounts. One of these benefits is that the token guarantees users a transaction charge of zero or less.
Furthermore, investors are reassured of the worry of manipulations due to TUSD’s consistent attestation and high openness. Among other things, its transparency is praised. It also makes it simple to exchange the token for the corresponding amount of US dollars.
It has key benefits like:
- By releasing attestations on a regular basis, it gives stronger legal protection.
- To redeem USD in place of the token, a minimum of $10,000 is required.
- Allows users to directly exchange USD for collateral accounts.
- After completing a short KYC/AML process, the individual is better protected.
- It is directly backed by US dollars.
- Escrow accounts are frequently processed with attestations, which are transparent and available to the public.
TrueUSD (TUSD), because of its importance in the crypto sector, is currently gaining traction. Furthermore, with its top-rated attribute of transparency, it aspires to become the top-listed stablecoin. Since its inception a few years ago, the coin has experienced significant growth. As a result, it is correct to predict the asset’s success.
The asset’s availability on the Ethereum blockchain, for example, ensures that the token has the essential mechanism to explore the crypto ecosystem and develop exponentially among other stablecoins.