Binance announced the introduction of TrueUSD [TUSD], a regulatory-compliant stablecoin that promises low volatility and full collateralization. The trading pairs went live on Binance on May 22nd at 4 AM UTC. TUSD is very similar to USD Tether [USDT] except it offers the benefits of being backed by fiat while retaining the qualities of blockchain tokens like transaction speed and low fees.
TrueUSD was developed by the Trust Token project, a ”platform to create asset-backed tokens” that can be easily be traded worldwide. The platform publicizes TUSD as a ‘stablecoin‘ that will be redeemable ‘1-for-1 for USD dollars’. This claim is yet to be realized as other similar assets have attempted this feat before.
Binance lists TUSD trading pairs
Binance announced that it would be introducing TrueUSD trading pairs to its platform. The pairs available are Ethereum [ETH], Bitcoin [BTC] and Binance Coin [BNB]. According to Binance:
The user can also redeem real US Dollars by sending the TUSD tokens back to the smart contract address, which will notify the trust company, and initiate a bank transfer to the user’s account.
Like most assets debuting on Binance, TUSD spiked to .0003 Satoshi shortly after its introduction to the platform before stabilizing around .00012 Satoshi or $1.01.
Stablecoins and TrueUSD
Stablecoins are assets that aim to provide low volatility and full collateralization. This allows stablecoins to be used as a currency and as a store of value. This is a very difficult task even for assets like gold which have proven to be less than stable over the years.
Coming up with a stablecoin has been close to impossible except maybe for USD Tether, and the lack of auditing on USDT might break the stability in the long run.
The Trust Token project uses real US dollar escrowed funds to back the token. The funds are in an escrow account that can be accessed through open source smart contracts so that Trust Token is never in contact with the funds. This will allegedly bring stability and legal protection to the token unlike any other before. TUSD will be backed by real USD dollars 100% and will be audited to comply with regulations, including standard Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.
TrueUSD started being added to exchanges on February 2018. Trust Token plans to develop more assets like TrueEuro, TrueGold and more.
About Trust Token
Trust Token has spotted a major opportunity in the world of blockchain. According to Trust Token’s blog, the organization is ”the world’s first platform to securitize and transact real-world assets on blockchains in a way that is legally enforced, audited and collateralized”.
The team at Trust Token includes attorneys, blockchain and machine learning engineers from Stanford, Palantir and Google. Trust Token partners include Stanford University, Stanford-StartX Fund, Futurism, G&TCA, Law Offices of Oshins & Associates LLC, WilmerHale, Sterling Trustees, Bittrex, Blocktower and more. The organization has been featured in The Wall Street Journal, Forbes, Bloomberg and Inc. to name a few.
Read more on Trust Token’s website.
Featured image by Kurtis Garbutt – CC By 2.0
Crypto enthusiast, writer and editor.