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What is TrueUSD (TUSD) All About?

Updated: Dec 20, 2019

TrueUSD is a price-stable cryptocurrency that can be redeemed 1-for-1 in US dollars. The USD backed ERC-20 coin is legally protected, fully collateralized, and transparently verified by third-party attestations. The token TUSD employs multiple escrow accounts, which help in reducing counterparty risk. It also provides token-holders with legal protections against any misappropriation.

This guide will discuss the purpose for which TrueUSD was designed for, the team behind it, the way it works, and the various uses and applications.

What Is TrueUSD Designed For?

The stable coin was designed for the digital world, as an improvement over Tether (USDT). For instance, USDT does not provide strong legal protection, which has hampered its wide acceptance. The team behind TrueUSD designed the system to employ escrow accounts at every step of the process.

It is for this purpose that TUSD was built on the TrustToken platform, as its first asset token. The TrustToken platform is used to create asset-backed tokens, which users can easily buy and sell on a global level. For instance, dollar to dollar tokens or gold to a gold tokens can be created using the TrustToken platform.

Who Is the Team Behind TrueUSD?

TrueUSD is co-founded by a team comprising of Danny (Jai) An, Rafael Cosman, Stephan Kade, and Tory Reiss. The crypto coin is supported by many notable figures from the crypto space. For instance, Changpeng Zhao, Binance CEO recently wrote in a tweet that TUSD was something people could buy more of.

TUSD company that built TrustToken platform and manages TrueUSD, was founded by Danny An, Rafael Cosman, and Stephen Kade in September 2017.

How Does TrueUSD Work?

There are two main processes involved with the functioning of TrueUSD – purchase, and sale of TUSD.

For the purchase of TUSD, TrustToken works with numerous trust companies that have experience in managing billions of dollars. A user is required to clear mandatory KYC/AML check, to enter in an escrow agreement with the trust company, and send USD. TrueUSD smart contract is then instructed by the trust company’s API (after verification of funds) for issuing an equal amount of TUSD, to the sender’s public Ethereum address.

To redeem TUSD, the receiver is required to pass a KYC/AML check, for being able to send the smart contract, involving TrueUSD tokens from their registered Ethereum address. After this, the escrow bank shall send an equivalent amount of funds in USD directly.

While its direct competitor, USDT (Tether) employs the Omni Protocol on the Bitcoin blockchain, TUSD uses Ethereum blockchain, which allows for a more advanced issuance mechanism. In the entire process, the TrueUSD system does not touch the funds. Purchase and receipt of user funds are entirely carried out through escrow accounts.

The token TUSD is currently available in over 90 markets, including Binance, Huobi, HitBTC, and CoinTiger.

It can be paired with most major crypto coins, including BTC, KRW, ETH, BNB, and USDT. This has made it easy for TUSD token users to access or purchase TUSD, instead of an alternate cryptocurrency, which allows bypassing of KYC norms.

What are Current and Future Applications of TrueUSD?

Once TUSD tokens are in a wallet, they can be used for making payments or transferring to people. Crypto coin effectively combines the benefits of traditional fiat currency (stability and trust) with those of crypto coins (reduced fees and transfer times).

TUSD has been designed with a few use cases in mind. The token can cater to:

● Mainstream Commerce

TUSD can be used as a way to make payments more digital. It can pay for salaries, escrow, loans, and purchases while maintaining price stability, and enabling mainstream adoption of cryptocurrencies in e-commerce.

● Crypto Traders and Exchanges

It affords hedge against volatility for the currency in the entire crypto market. Currencies can be moved into the crypto space, without having to immediately expose it to BTC or ETH.

● Developing Economies

Cryptocurrencies have a big hand in supporting the economy of third-world countries, like China and developing economies, like Venezuela.

● Financial institutions

The currency allows institutional trust and dependence on crypto investments, and also allows financial institutions to gain immediate exposure to BTC and ETH.

Plans for TrueUSD are highly ambitious. They plan to tokenize other currencies and assets in the form of TrueEuro, TrueYen, and TrueBond. It already has TrueGBP, TrueAUD, TrueCAD, and TrueHKD alive.

The organization is also looking forward to tokenizing baskets of stable goods, including real estate and precious metal. The best part being the special design for the baskets, which will qualify them for a place on the global exchange listings.

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