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Investing in TrueUSD (TUSD) – Everything You Need to Know

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What is TrueUSD?

TrueUSD (TUSD) is a digital asset structured to function as a stablecoin.  It operates atop a variety of networks, including but not limited to,

  • Ethereum
  • The Open Network
  • Binance Smart Chain
  • Avalanche
  • TRON

What is the Purpose of  TrueUSD?

As a stablecoin, TrueUSD (TUSD) is designed to provide access to the stability and reliability of the US Dollar within the digital asset market.  Furthermore, it looks to do so while providing holders with the ability to easily send and receive funds on a global scale, 24/7.

How Does TrueUSD Work?

In order to function as intended, TrueUSD utilizes a collateralization mechanism meant to maintain its value stability.

When a user wants to obtain TrueUSD, they go through a process called ‘minting'. This involves depositing US dollars with a trusted third-party escrow account provider, which then issues an equivalent amount of TrueUSD tokens to the user's supported wallet address.

TrueUSD states that these US Dollar deposits are regularly audited to ensure transparency, and the maintenance of a 1:1 backing ratio.

To redeem TrueUSD for US dollars, users initiate a process called ‘redemption'. This involves sending TrueUSD tokens to the issuer, which then transfers an equivalent amount of US dollars to the user's bank account after the tokens are burned.

The smart contract governing TrueUSD ensures that the number of tokens in circulation matches the funds held in reserves. The system allows for fast, low-cost transactions while providing stability and liquidity comparable to traditional fiat currencies, making it suitable for various use cases in the digital economy such as,

  • remittances
  • payments
  • long-term holdings

History

TrueUSD (TUSD) was launched in March 2018 by TrustToken – a company focused on tokenizing real-world assets.  In mid-2022, TrustToken underwent a rebranding to ‘Archblock'.

TrueUSD aimed to address the need for a reliable and transparent stablecoin in the digital asset market. It quickly gained popularity as an alternative to Tether (USDT) due to its commitment to regular audits and collateralization with US dollars.

Since its launch, TrueUSD has continued to evolve, gaining partnerships with various exchanges and expanding its user base, solidifying its position as one of the leading stablecoins in the digital asset ecosystem.

Regulatory Status

Stablecoins in general remain in a relative state-of-limbo with regards to regulation.  While their use is widespread, their potential classification as a security has been brought in to question on various occasions as entities such as the Securities and Exchange Commission (SEC) look to exert power over the industry as a whole.

Furthermore, different jurisdictions around the world are taking different approaches to their regulation.  Before using a stablecoin, make sure to research laws and regulations specific to your jurisdiction.

How to Buy TrueUSD (TUSD)

Currently, TrueUSD (TUSD) is available for purchase on the following exchanges.

Uphold – This is one of the top exchanges for USA & UK residents that offers a wide range of cryptocurrencies. Germany & Netherlands are prohibited.

Uphold Disclaimer: Terms Apply. Cryptoassets are highly volatile. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong..

KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens.  It is often the first to offer buying opportunities for new tokens.  USA Residents are Prohibited.

Binance – Accepts Australia, Singapore, and most of the world. Canada & USA residents are prohibited. Use Discount Code: EE59L0QP for 10% cashback on all trading fees. 

TrueUSD (TUSD) – Stability through Transparency

TrueUSD (TUSD) is a popular stablecoin that has made its name through placing an increased importance on reserve-asset transparency.  Through this, it has been successful in providing investors and traders alike with access to an asset that mimics the stability of the US Dollar.

Daniel is a big proponent of how blockchain will eventually disrupt big finance. He breathes technology and lives to try new gadgets.