BC. GAMEClaim 5BTC Now

What is TrueUSD Coin (TUSD) Token, Fully Regulated Stablecoin?

What is TrueUSD Coin (TUSD) Token, Fully Regulated Stablecoin?
BC. GAMEBCGAME - The best casino, 5BTC free daily bonus!BC. GAME Free 5BTC Daily Bonus!
Register now

TrueUSD is a stablecoin pegged to the US dollar at a 1:1 ratio. It was first launched to a limited base of investors in January 2018. Since then, TrueUSD has grown to incorporate nearly $400 million of paired tokens as of October 2020.

What is TrustToken?

TrustToken is a platform designed to create asset-backed tokens in the crypto space. The company's website demonstrates the ambition to tokenize assets such as oil, movies, timeshares, rental properties, small businesses and more.

TrustToken has a motivated and competent team, with employees hailing from Stanford, UC Berkeley, PwC, Google and Palantir. The company's core team consists of its four co-founders: CEO Danny/Jai An, CTO Rafael Cosman, COO Stephen Kade and product strategist Tory Reiss.

What is TrueUSD (TUSD)?

TUSD is a stablecoin introduced to the market in early 2018. Stablecoins are cryptocurrencies pegged to fiat or commodity currencies that have helped traders more conveniently make trading profits through significantly fewer interactions with traditional banks each time they make a trade. negotiation.

Designed to be simple, reliable and transparent, TrueUSD does not use any special algorithms or hidden bank accounts. TrueUSD dollar holdings are distributed across multiple bank accounts owned by different trust companies. All parties involved have signed a binding agreement to conduct monthly audits and publish guaranteed holdings. The TrueUSD token uses multiple escrow accounts to reduce counterparty risk and ensure token holders are legally protected from theft.

How does TrueUSD (TUSD) work?

TrueUSD works based on Ethereum smart contracts on blockchain Ethereum. These smart contracts allow a tokenized version of the US dollar to be issued and redeemed. When a user purchases TUSD through the TrustToken platform with US dollars, the platform's underlying smart contract automatically generates and issues the equivalent amount of TUSD, which becomes part of the token's circulating supply.

When a user redeems TUSD through TrustToken, a smart contract automatically burns the tokens being redeemed or permanently removes them from the circulating supply of TUSD. Simultaneously, the platform credits the user with an amount in US Dollars equal to the redeemed TUSD amount.TrustToken does not charge purchase or redemption fees on TUSD transactions. Instead, the company generates revenue by charging interest on US Dollars held in their accounts. With TrustToken, traders are aware of their ability to buy and sell TUSD at a 1:1 ratio, creating a natural arbitrage opportunity in the market. and keeping the token pegged to the dollar.

Read also   Bitcoin ETFs break streak of outflows as BTC surpasses $70K

Key Features of TrueUSD (TUSD)

  • Fully USD Backed – Each TUSD token has the equivalent US dollar value stored in the bank to back it up.
  • High Levels of Stability – A TUSD token is guaranteed by US Dollars held in the escrow account company so that the market recognizes the inherent value of the TUSD as being equal to the price of the underlying Dollar. New TUSD tokens are minted and burned by publicly audited smart contracts to ensure stability.
  • Redeemable – The TrustToken platform never discourages or prevents legitimate redemptions from verified customers. If an individual or organization passes Anti-Money Laundering (AML)/Know Your Customer (KYC) checks on the TrustToken platform, they can redeem TUSD for USD. At any given time, the minimum TUSD amount for withdrawal is US$10.000.
  • Reliable Fund Management – ​​TrueUSD's system is set up to allow you to exchange USD directly with third-party escrow accounts, rather than having to transfer money through the TUSD network.
  • Regulatory Compliance – The TrustToken platform ensures the long-term survival of the TUSD stablecoin through regulatory compliance. All escrow accounts are subject to regular (monthly) attestations that are published openly.

TUSD token

Due to its status as a stablecoin, the supply is unlimited, and it will continue to expand according to demand. There are two formations available for TUSD: the ERC-20 token on Ethereum and another, also known as TUSDB, the BEP-2 token on Binance Chain. The US dollar guaranteeing equivalent to TrueUSD is maintained through partnerships with banks and financial institutions.

Conclusion

TUSD is a safer investment option than other popular tokens among DeFi applications ( DApps ) for liquidity pools and peer-to-peer lending. Theoretically, TrustToken can issue the amount of TUSD required by users and provide the exact amount of dollars required, making the token attractive to investors of all portfolio sizes.

Stablecoins like TUSD do not value as they are pegged to real-world assets. That said, investors can still invest in TUSD just as they would in foreign currencies. After all, the TUSD is backed by the US dollar, which is currently the world's reserve currency, and will likely hold its top spot for the foreseeable future. The bottom line? TUSD is certainly a stablecoin to keep an eye on.

More about TUSD

Disclaimer: The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
Total
0
Shares

Related articles