So what is TrueUSD (TUSD)? What makes this stablecoin stand out, and can it replace BUSD? Let’s find out in the following article!
What is TrueUSD (TUSD)?
TrueUSD is a stablecoin issued on Ethereum and backed 1:1 with the U.S. dollar, meaning that each unit of TrueUSD will be guaranteed to be equal to one U.S. dollar just like popular stablecoins today.
TrueUSD is developed by TrustToken Inc. and overseen by leading auditing firms such as Armanino, Cohen & Company, ConsenSys Dilligence, and others.
Currently, in addition to Ethereum, TUSD also supports transactions on other popular blockchain networks, such as BNB Chain, Arbitrum, Fantom, Polygon, etc.
What is TrustToken?
TrustToken is a financial technology company founded in 2017, specializing in providing blockchain and digital currency solutions, and has received investment from major players such as a16z, BlockTower, and Morgan Creek.
The main purpose of TrustToken is to build tokens backed by real assets to enhance the transparency and reliability of digital currencies.
TrustToken develops and manages a number of different tokens, including: TrueUSD (TUSD), TrueGBP (TGBP), TrueAUD (TAUD),…
How does TrueUSD (TUSD) work?
Each TrueUSD (TUSD) token is equivalent to one US dollar. All U.S. dollar-denominated reserves are held in escrow accounts.
When a user wants to buy TrueUSD, they must pass KYC/AML verification and then deposit USD into one of TrueUSD’s trust partners. Once the funds are verified, TrueUSD will be issued in proportion to the deposit amount, at a 1:1 ratio.
Compare TUSD to current stablecoins
According to the stablecoin market share ranking compiled by DefiLlama at the time of writing (February 28, 2023), the stablecoin TUSD ranks 5th with a total trading supply of over $1.1 billion, which is also the highest level since August 2022.
If compared with USDT, USDC, BUSD, the 3 most popular stablecoins today. The current total of 1.1 billion TUSD is still a “minuscule” number, and it will take a lot of time and community response to occupy a higher position in the current stablecoin market share.
Over 60% of TUSD (approximately $671 million) is allocated on the Ethereum network, and 37.8% is allocated on the Tron network. Although it supports transactions on many networks, the current number of TUSD is not used on BNB Chain, Arbitrum, Fantom, Polygon and other blockchains that are currently concerned by the community.
However, the distribution of tokens on the TUSD network is somewhat similar to the current BUSD. BUSD is mainly distributed on 2 networks, Ethereum (73%), BSC (currently BNBChain) (26.2%), and is not pushed much on other popular networks.
It is speculated that the current purpose of market makers to issue and use TUSD is to be a "stable store asset" like BUSD with the main purpose of circulation and development on Binance.
Can TUSD replace BUSD?
At its current market cap, TUSD is only 1/10 of BUSD. However, BUSD stopped being issued and continued to be destroyed. Coupled with the additional issuance of TUSD, the market value of TUSD "continued to increase" and completely occupied the top spot.
Additionally, TUSD is backed by trusted fiat and foreign currency assets tracked and monitored by Chainlink’s Proof-of-Reserve, while BUSD is backed only by Binance’s internal assets.
Therefore, TUSD is considered a safer option for users looking for stability in their crypto investments.
With the above advantages, TUSD can become the choice for investors to store assets in the near future.
However, there are many other factors to consider when comparing TUSD vs BUSD, and the final decision depends on the user's needs and intended use.
What does TrueUSD (TUSD) have to do with TrueFi (TRU)?
The announcement of Binance’s issuance of TUSD to the public was accompanied by a bullish effect on TrueFi Token (TRU), triggering a wave of speculation on the token.
However, there are a few points to note about TUSD and TRU:
TrueUSD (TUSD) and TrueFi (TRU) are both “predecessor” products of the TrueFi protocol, but they are “no longer related” to each other.
TrueUSD (TUSD) is a "stablecoin" and TrueFi (TRU) is a "lending" protocol, both built and developed on Ethereum.
TrueFi uses TRU as a token to participate in protocol operations, including DAO voting. TrueFi users can borrow and lend equivalent assets, much like the current Liquid Staking Ethereum platform.
Previously, TrueFi used TUSD as collateral for loans on the TrueFi platform. However, TrustToken sold TUSD to a company called Techteryx in 2020, as TrustToken CEO Rafael Cosman announced at the time.
Techteryx is an “Asia-based conglomerate operating in the traditional real estate, entertainment, environment and IT industries.”
TrustToken also forked from the TrueFi protocol and changed its name to Archblock last year as TrueFi embarked on the path of a decentralized platform.
Frequently asked questions about TUSD
How to use TUSD?
You can buy TUSD at cryptocurrency exchanges or traders around the world. After making a purchase, you can use TUSD to pay or transfer money to others quickly and securely.
Does TUSD have transaction fees?
TUSD trading fees depend on the exchange or dealer you use. However, TUSD’s transaction fees are generally lower than other cryptocurrencies.
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I have answered your question what is TUSD and provided information about the project. Let’s learn and evaluate together to make the most informed investment decisions. Good luck! ! !
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