TUSD
Market Cap: $1.1 Billion, as of 26-April-2022
Contract:
Collateralization Mechanism & Details: TUSD is 100% backed by US dollars
History/Context + Risk Assessment: True USD was launched in 2017 by Trust Token, a firm that specializes in tokenizing real world assets. The premise of TUSD is very similar to Paxos’ USDP: a regulatory compliant, fully collateralized stablecoin. While it has not worked to become a full reserve bank or trust company, Trust Token claims this is for operational reasons, not material. They are domiciled in Nevada, and contract private trust companies to hold funds in escrow. They maintain that these companies are subject to regulatory oversight, and that Trust Token proactively engages with both state and federal regulators regarding the legal status of stablecoins.
Regulation aside, True USD’s differentiator comes in the form of on-chain proof of supply and reserve, launched in early 2020. Trust Token established two partnerships with Chainlink, a decentralized blockchain oracle network, and Armanino, an accounting, consulting and technology firm, on this feature. The result is an oracle node that can be pinged for real-time reporting of funds held in escrow to back USDT.
As is typical for fully-collateralized stablecoins, TUSD is burnt anytime it is exchange for fiat, and only minted when fiat dollars are deposited into the protocol.
Last updated