TrueUSD (TUSD): A transparent USD-pegged stablecoin

ProductOct 13, 2022
TrueUSD (TUSD): A transparent USD-pegged stablecoin

Retaining the same worth as the US dollar, TrueUSD works as a simple and transparent digital asset. TUSD crypto, hailed as “the first independently-verified digital asset redeemable 1-for-1” for USD, has multiple uses. Discover its key merits and applications in our guide.

What is TUSD crypto?

Like its counterpart Tether, TrueUSD emerged as a USD-pegged ERC-20 token, a digital asset within the Ethereum ecosystem. It is the first cryptocurrency developed on TrustToken, a platform for building tokenized crypto. The company’s vision extends to diverse real-life assets, from rental properties to patents.

So far, TUSD has been deployed on four native blockchains and eight other public chains through cross-chain solutions. Its liquidity is supported by popular exchanges, decentralized protocols, and over-the-counter (OTC) desks used by residents of 120+ countries.

TUSD maintains its peg at a fixed 1:1 ratio, with the underlying USD holdings spread across trust companies’ accounts. This stablecoin has three key characteristics:

  • Fully collateralized. The circulating supply shrinks or grows based on the total USD amount in dedicated bank accounts.
  • Legally protected. The use of multiple escrow accounts reduces counterparty risk and provides legal protection in case of theft.
  • Transparently verified. The amount of collateralized holdings is published daily and audited monthly.

Is TUSD safe?

According to the official website, the circulating supply of the TUSD coin — 900,577,581 TUSD — is backed by $910,456,493, so the amount of reserves exceeds the value of all tokens. Most TUSD tokens exist on Ethereum ($571.4 million), with the rest divided between Binance Chain, TRON, and Avalanche. Five partners hold the USD reserves for TUSD:

  • Signature Bank
  • Silvergate Bank
  • Prime Trust
  • First Digital Trust
  • BitGo
TrustExplorer data for USDT as of October 11, 2022. Source: TrustExplorer
TrustExplorer data for USDT as of October 11, 2022. Source: TrustExplorer

This level of openness gives TUSD an edge over USDT. Tether’s flagship token, the biggest stablecoin by market cap, is steeped in controversy due to a lack of transparency around its underlying holdings.

How does the TUSD coin work?

Certified fiduciaries and banks store and manage the underlying assets. Publicly audited smart contracts handle minting and burning, and both types of operations involve independent escrow accounts. The KYC and AML checks are mandatory — only verified users can buy or redeem TUSD through the company’s app.

  • To purchase TUSD, users send USD to the respective trust company’s escrow account. New tokens are minted and sent to the buyer automatically once the funds are received.
  • To redeem TUSD, holders return their tokens to the company’s smart contract address. The equivalent amount of TUSD is destroyed — burned — immediately, and a fiat transfer is triggered.

TrueUSD history highlights

The TrustToken team includes professionals previously employed by Stanford, UC Berkeley, Palantir, and Google. Here are the key milestones so far.

  • The TrueUSD token was launched in January 2018.
  • In March 2019, TrustToken partnered with accounting firm Armanino to launch real-time monitoring of the underlying USD reserves.
  • In August 2019, TUSD launched on Binance Chain.
  • In December 2019, TrustToken and Armanino launched a stablecoin assurance platform called TrustExplorer. It creates a layer of transparency and trust for digital asset companies.
  • In September 2020, the TUSD market cap exceeded $500 million.
  • In January 2021, TUSD partnered up with Silvergate, one of the pioneering crypto-friendly banks that now serves around 750 exchanges.
  • In March 2021, TUSD launched natively on Avalanche Chain, with deployment on TRON a month later.
  • In December 2021, the total number of addresses with TUSD holdings exceeded 400,000.

Strengths of TUSD stablecoin

The TUSD network has prominent supporters, such as Founders Fund Angel, Stanford-StartX, and Blocktower Capital. As we have mentioned, TrustToken puts a strong emphasis on transparency. Aside from trusted fund management, TUSD offers:

Regular third-party attestations and escrow accounts provide confidence and legal protection. The attestation results are published online. TrustExplorer, the first app providing such accountant reports in real-time, has reduced the “transparency” time frame to minutes.

Simple redemption for USD

Any user, corporate or individual, can redeem TUSD tokens for US dollars (at least $1,000) on the official platform provided after an AML and KYC check. Minting and redemption are almost immediate thanks to financial partners like Signet by Signature Bank, the Silvergate Exchange Network (SEN), and PrimeX by PrimeTrust.

Full collateral

Each token is fully collateralized by US dollars in the escrow accounts. Public audits ensure that the reserves match the circulating supply. Minting and burning are automatic, and the immutability of smart contracts guarantees accuracy.

How to buy TUSD?

There are two ways to obtain TUSD tokens. You can get them through the official TrueUSD application (following AML and KYC procedures) or use a crypto exchange. Aside from BNB and ETH, TUSD is tradable for XRP, LINK, ADA, BNB, and a wide range of other cryptocurrencies.

TUSD price

TUSD has held on to $1 quite firmly, with occasional fluctuations. The TUSD to USD price reached an all-time high of $1.62 on August 26, 2018, and dipped to an all-time low of $0.883550 on March 12, 2020.

USDT price chart. Source: Coingecko
USDT price chart. Source: Coingecko

Currently, TUSD is trading at $0.999796, with a 24-hour change of 0.1% and a 7-day and 14-day change of -0.1%. It is the 6th stablecoin and the 56th cryptocurrency by market cap (just under $903.3 million). The available supply is 903.7 million tokens.

TUSD vs. USDC

USD Coin is another popular stablecoin backed by USD. Both tokens maintain a 1:1 ratio, offer more transparency than USDT, and have similar use cases. Like Circle, the company behind USDC, TrustToken prides itself on transparency and third-party verification.

TUSD and USDC emerged as ERC-20 tokens compatible with a breadth of Ethereum-related services. Both are fully reserved, but an essential difference between USDC vs. TUSD is the absence of escrow accounts. Learn more in our USDC review.

TUSD use cases

Once the tokens reach your TUSD wallet, you can use them like other stablecoins. TrueUSD combines the stability of fiat with quick transfers, low fees, and global reach. As the adoption grows, we can expect more applications, so keep an eye on TUSD news.

Trading

According to the issuer, TUSD trading is supported by 70+ exchanges and 20+ OTC desks worldwide. Like other stablecoins, the tokens bridge the gap between crypto and tangible assets.

TUSD trading pairs let users save on exchange fees and hedge against volatility. Investors who doubt the prospects of specific cryptocurrencies can convert funds to TUSD instead of withdrawing them.

Transfers

A stablecoin backed by the leading reserve currency, TUSD facilitates remittances. Users transfer significant amounts quickly and circumvent high fees. International transfers through conventional systems may cost up to 10% of the transaction amount.

Furthermore, multi-chain compatibility lets users choose the most cost-effective channel for their needs. Generally, sending BEP-20 and TRC-20 stablecoins is faster than using ERC-20, and the fees are minimal.

Holding

TUSD is a hedge against crypto market turbulence and high inflation outside the US. Its price is nearly as stable as the dollar. Like other popular stablecoins, TUSD is a store of value.

TUSD is also attractive for the unbanked. In countries where banks reject small clients and charge high fees, stablecoins present a much-needed solution. Residents can convert their holdings to USD-pegged tokens online, enjoy all the benefits of a cryptographic currency, and protect their money from devaluation.

International trade and B2B

Business transactions entail mounting fees that are particularly damaging for small and medium-sized companies. By replacing fiat with stablecoins, they cut costs and speed up financial operations.

Passive income

While the yield on fiat deposits is low, crypto lets you earn an attractive TUSD APY by parking your tokens on crypto platforms.

In addition, TUSD has multiple applications in decentralized finance, including TUSD staking and farming. Projects running on Ethereum, TRON, Avalanche, and BSC offer significant returns.

TrueUSD on CoinLoan

Buy, swap, or borrow TUSD through our trusted and regulated platform. CoinLoan offers competitive TUSD interest rates on loans and deposits and a user-friendly exchange with an intuitive interface. Earn TUSD with zero effort — park your assets and watch them grow!

Our flexible solutions suit different investment needs. Once you verify your account, TUSD and dozens of other cryptocurrencies will be a few taps away. Here is how to make the most of this stablecoin.

Discover instant TUSD loans

Use your crypto as collateral for instant loans, and get TUSD in seconds. We offer a range of LTV rates and repayment periods. Forget credit score checks and approval delays — all you need is an account and collateral matching your LTV threshold.

Earn TUSD interest

Keep your stablecoins in Interest Account for an attractive, higher-than-average yield. You can choose the standard compound rate or upgrade it by staking CLT tokens.

  • 10.3% APY on TUSD
  • Up to 12.3% APY on TUSD with CLT Staking

Buy or swap TUSD on CoinLoan Exchange

Buy or sell TUSD on our Crypto Exchange from your smartphone or computer 24/7. Swap the stablecoins for BTC, ETH, popular altcoins like XRP, DOT, and ADA, or fiat currencies. Enter the amount you want to swap, select the crypto, and click Exchange.

Final word

TUSD is one of the most transparent USD-pegged stablecoins. It is a popular inflation hedge, a payment method, and an asset for passive income. Despite a smaller market cap, TUSD outshines USDT in terms of legal support and protection: regular attestations, escrow accounts, and real-time monitoring give holders confidence.

There are many ways to use this stablecoin on CoinLoan. Buy, sell, borrow TUSD, use it as collateral, earn standard interest, or upgrade your APY through CLT Staking!

Disclaimer:

The information provided by CoinLoan (“we,” “us,” or “our”) in this text is for general informational purposes only. All investment and financial opinions expressed by CoinLoan in this text are from the personal research and open information sources and are intended as educational material. All outlined information is provided in good faith. However, we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information in this text.

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