What is TrueUSD? Everything you need to know TUSD

TrueUSD is considered as one of the prominent Stablecoins, which is a type of token designed to address price stability issues in highly volatile markets like crypto.

Let’s explore what TrueUSD (TUSD) is with the following article from AZCoin.

Overview of stablecoin TUSD

TrueUSD (TUSD) is a new stablecoin, similar to Tether (USDT)
TrueUSD (TUSD) is a new stablecoin, similar to Tether (USDT)

TrueUSD (TUSD) is a new stablecoin, similar to Tether (USDT), that aims to provide a stable and reliable digital currency. Built on the Trust Token platform, which connects blockchains to real-world assets, TUSD offers a 1:1 exchange rate with the US dollar.

Unlike other cryptocurrencies, TrueUSD provides full transparency regarding its USD backing. This includes detailed information on the collateral, certifications, and legal safeguards for converting TUSD back to USD.

The goal of TrueUSD is to create a simple and transparent stablecoin, eliminating the need to trust companies with opaque bank accounts or rely on complex algorithms. TrueUSD’s legal framework allows for direct USD exchange through escrow accounts, ensuring that neither the company nor the user has direct access to the funds. This third-party escrow system, along with smart contracts, guarantees a 1:1 TUSD/USD exchange rate, fostering maximum transparency and security.

Features and characteristics of TrueUSD

TrueUSD is a stablecoin that emphasizes the following core features:

  • Price Stability: TrueUSD’s value is backed by the US dollar, making it a stable currency suitable for any cryptocurrency exchange.
  • Legal Protection: Anyone who passes KYC/AML checks can legally use TrueUSD for USD transactions.
  • 1:1 TUSD-USD Ratio: Every TrueUSD coin is fully backed by USD, held in publicly disclosed bank accounts.
  • Transparency: TrueUSD’s bank accounts are publicly accessible and undergo monthly audits by reputable third parties.
  • Bank-Grade Security: TrueUSD undergoes regular independent third-party assessments by leading auditors to ensure the highest possible security practices.
  • Direct Bank Withdrawals: Users don’t need to interact with TrueUSD when exchanging for USD. Instead, they can transact directly with the company’s bank, and TrueCoin never touches the funds.

Compare TUSD with current stablecoins

TUSD's current $1.1 billion supply is relatively modest
TUSD’s current $1.1 billion supply is relatively modest

As of February 28, 2023, according to DefiLlama’s stablecoin market share rankings, TUSD holds the fifth position with a circulating supply exceeding $1.1 billion. This marks the highest recorded value since August 2022.

Compared to the top three stablecoins, USDT, USDC, and BUSD, TUSD’s current $1.1 billion supply is relatively modest. It would require significant time and community support to achieve a higher market share ranking.

Over 60% of TUSD (~$671 million) is currently allocated to the Ethereum network, with 37.8% on the Tron network. Despite supporting transactions on multiple networks, TUSD’s current usage on popular blockchains like BNB Chain, Arbitrum, Fantom, and Polygon remains limited.

However, TUSD’s network token distribution shares similarities with BUSD. BUSD primarily focuses on Ethereum (73%) and BSC (now BNBChain) (26.2%), with less emphasis on other prominent networks.

It seems that the creators of TUSD intend to position it as a stable asset, similar to BUSD, with a primary focus on circulation and development within the Binance ecosystem.

Is Binance favoring TUSD as a replacement for BUSD?

Binance, the world’s largest cryptocurrency exchange, has been heavily promoting TUSD as a potential replacement for BUSD, its own stablecoin. This is evident through Binance’s recent actions, including the minting of over $130 million worth of TUSD and its subsequent rise to the 50th largest cryptocurrency by market capitalization on CoinGecko.

This shift stems from the legal scrutiny faced by BUSD in early 2023, which led to the US authorities targeting its issuer, Paxos, and forcing them to halt further BUSD issuance.

While Binance hasn’t explicitly confirmed TUSD as its chosen stablecoin replacement, the continuous minting of TUSD since BUSD’s legal troubles has fueled speculation within the cryptocurrency community about Binance’s future plans regarding its own stablecoin solution.

How to use TrueUSD

You must pass KYC and AML check to use TUSD
You must pass KYC and AML check to use TUSD

Here’s a basic overview of how TrueUSD works:

  • Verification: You must pass a Know Your Customer (KYC) and Anti-Money Laundering (AML) check.
  • Deposit: You deposit US dollars into a trusted company that holds your funds in escrow.
  • Tokenization: Once the company verifies your deposit, their API instructs TrueUSD’s smart contracts to issue an equivalent amount of TUSD tokens to your public Ethereum address.
  • Withdrawal: To withdraw US dollars, you’ll need to pass another KYC/AML check. You then send your TUSD tokens from your registered Ethereum address to the smart contract. The bank will then monitor and process your withdrawal.

TrueUSD development team

TrueUSD, founded in September 2017 and headquartered in the San Francisco Bay Area, boasts a development team comprised of prominent individuals from Stanford University, Google’s Google Brain division, and Palantir Technologies. Here are some key members of the project:

  • Daniel An, CEO of TrustToken, brings a background in IT and data science, with experience managing developers at PwC.
  • Rafael Cosman, CTO of TrustToken, specializes in machine learning, having worked at Google Brain and Palantir. He is also the founder of HackSphere, a private community of over 200 engineers from Stanford and MIT.
  • Stephen Kade, co-founder of TrustToken, is a former researcher at Kernel and co-founder of NeuroTechX.

TrueUSD enjoys partnerships with notable organizations, including Stanford University’s StartX Fund, G&TCA, Oshins & Associates, LLC, Cooley, WilmerHale, Nevada Alliance Trust Company, Wealth Advisors Trust Company, and others.

The project is overseen by leading audit firms like Armanino, Cohen & Company, and ConsenSys Diligence.

However, in 2020, TrustToken sold TUSD to Techteryx, an Asian-based conglomerate operating in real estate, entertainment, environmental, and traditional IT sectors.

Where can I buy and sell TUSD coins?

For centralized exchanges, you can trade TUSD on platforms like Binance and Kucoin
For centralized exchanges, you can trade TUSD on platforms like Binance and Kucoin

For centralized exchanges, you can trade TUSD on platforms like Binance and Kucoin.

For decentralized exchanges, you can choose Uniswap or PancakeSwap.

Discover trusted trading platforms on the best crypto exchanges 2024 page.

Relationship between TrueUSD (TUSD) and TrueFi (TRU)

TrueUSD (TUSD) and TrueFi (TRU) were initially both products of the TrueFi Protocol.

TUSD served as a stablecoin, while TRU was the token used by TrueFi users to borrow and lend equivalent assets. It also enabled participation in protocol activities, including DAO voting.

However, in 2020, the two entities became independent after TUSD was sold to Techteryx Group.

Conclusion

This article has provided you with a basic understanding of TUSD stablecoin. Now, you have the information needed to make your own informed investment decisions. For a more accurate investment assessment, refer to the Evaluation Process.

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