Cryptocurrency users can surely transfer funds to each other easily, but they are still dependant on fiat currencies when buying day-to-day items granted that very few places take cryptocurrencies. Part of the crypto world has become conventional to the concept of growing alongside the legacy financial system, a method that may view blockchain technology integrated with the present financial standard cooperatively, rather than overcoming it. With this in mind, various projects in crypto have set out to design products created with the existence of fiat currencies in mind. It is the case with stablecoins.
A stablecoin is a blockchain-based cryptocurrency whose worth is pegged to that of a more stable asset like gold, oil, or fiat currencies. As such, stablecoins remains the same value as their underlying asset, alleviating the high volatility currently present in the Bptocurrency industry.
What is TrueUSD (TUSD)?
TrueUSD is a new project that has developed and launched a stablecoin, proposes a separate strategy to trade with both of these issues and, while the project is young, TrueUSD seems to endeavor towards a higher figure as its name alludes to.
US Dollars in the TrueUSD system are kept in the bank accounts of many trust companies that have contracted escrow agreements, rather than in a bank account managed by a single company. According to TrueUSD, the contents of related bank accounts are issued every day and are subjected to monthly audits. This method of storing USD guarantees that the user can have higher trust in TrueUSD considered as the collateralized holdings are not centralized in any single entity, but preferably distributed throughout multiple fiduciary partners.
Technology and Features
Regarding the technology, TrueUSD executes a framework that assures they are not in management when issuing tokens. While the USDT tokens are distributed on the Bitcoin blockchain through the Omni Protocol, TrueUSD (TUSD) tokens are based on the Ethereum blockchain, enabling for a more advanced issuance mechanism.
If someone wants to get TrueUSD through the online application, they will require to pass a KYC/AML check. Once that’s finished, they can transfer USD to one of TrueUSD’s trust company partners. Once the trust company establishes the funds, their API will direct the TrueUSD smart contract to distribute tokens on a 1 to 1 ratio and to transfer them to the Ethereum address connected with the account at hand.
Once transferred to the wallet, the tokens can be carried to a friend or used as payment, merging the benefits of fiat (stability and trust) with those of cryptocurrencies, decreased fees and transfer times. The user can also claim real US Dollars by giving the TUSD tokens back to the smart contract address, which will inform the trust company, and begin a bank transfer to the account user.
The system above proves that the issuance occurs in a decentralized environment that uses multiple APIs, which guarantees the handling of the underlying fiat currency is higher to previous alternatives.
The TrueUSD (TUSD)
TrueUSD is considered as a USD-backed ERC20 stablecoin that is sufficiently collateralized, legally protected, and transparently supported by third-party attestations. TrueUSD utilizes multiple escrow accounts to lessen counterparty uncertainty and to give token-holders with legal protections against misappropriation. TrueUSD is the first asset token created on the TrustToken platform.
How To Use TUSD
TrueUSD has been produced with some use cases in mind including manageable financial services, trading, and online commerce. Although a very different infrastructure can be created around the TUSD token and other upcoming TrueCoins, the possibly strongest use case is as a replacement or option to USD on cryptocurrency markets.
Who can utilize TrueUSD?
They’ve created the alpha version to address the urgent requirements of crypto exchanges, crypto traders, and financial businesses.
Crypto Traders and Exchanges:
Cryptocurrency traders require a trustworthy stablecoin to hedge upon volatility and access crypto markets without immediate exposure to BTC/ETH.
Everyday people and businesses can experience the advantages of digital currencies, faster transaction speed than ACH, global influence without the volatility of Bitcoin. Now users can repay a salary, take out a loan, or get coffee with a cryptocurrency, allowing a new economy of cryptocurrency financial applications.
Some developing markets are more reliant on cryptocurrencies for trade.
Financial companies that require to get into crypto, but have right reservations against setting, e.g. $100M into a new algorithmic stablecoin versus $100M of “legally-enforceable certificates of ownership of the US dollar.”
The Core Team
The team comprises from Stanford, UC Berkeley, Palantir, and Google; its supporters include Founders Fund Angel, Stanford-StartX, and Blocktower Capital. The TrueUSD team has produced a legal framework for collateralized cryptocurrencies in partnership with WilmerHale and White & Case and has a system of fiduciary, yielding, and banking partners.