TrueUSD (TUSD) is a stablecoin designed to keep a 1:1 peg to the United States dollar (USD). The cryptocurrency is built on the Ethereum network, making it an ERC20 token. Distinctively, TUSD is among the first stablecoins to display a publicly visible proof-of-reserve attestation.
TrueUSD saw its highest adoption rate yet between February and March 2023. The surge in investors’ involvement followed the decision of the leading cryptocurrency exchange, Binance, to gain exposure to TUSD. Still, the question stands: Is TUSD worth investing in?
The internet contains several explainer articles on the topic, many of which are difficult to grasp. However, we make it easier for curious readers at any level to receive a detailed examination of the TrueUSD stablecoin. Here is a quick outline to ease your navigation through the guide:
- What is TrueUSD?
- TrueUSD vs Other Stablecoins
- Cryptocurrency exchanges that support TUSD
- Frequently Asked Questions
What is TrueUSD?
TrueUSD is a USD-pegged stablecoin created by TrustToken in early 2018. TrustToken is a financial company that offers asset-backed cryptocurrencies.
For more context, a stablecoin is a type of cryptocurrency designed to maintain a 1:1 peg to the price of one unit of a real-world asset or currency like gold, dollar, euro, etc. Since stablecoins keep a relatively stable price, they serve as a haven for cryptocurrency users to shield themselves from market volatility.
TUSD uses a TrustToken-compatible smart contract to generate and issue stablecoins to users. Newly issued tokens add to the asset’s circulating supply. Alternatively, when users sell TUSD, the smart contract burns the TUSD, removing them from the token’s circulating supply.
TUSD developers bolster their transparency and investor confidence by deploying real-time attestations for their underlying reserves by independent third-party institutions. The company secures the stablecoin’s reserves using various bank accounts belonging to different trust companies. These entities frequently conduct audits and publish collateralized dollar-pegged holdings. The Network Firm LLP, an accounting firm specializing in cryptocurrencies, handles the TUSD auditing process.
Price-tracking platform CoinStats reveals that TrueUSD has a market capitalization of approximately $3 billion at the time of writing. The stablecoin’s increased usage can be tied to several events. One occurred in October 2022 when the Commonwealth of Dominica embraced TUSD as a legal tender. The move allows Dominican residents to spend the stablecoin like the country’s East Caribbean dollar.
The stablecoin is also accessible on several centralized trading platforms, such as Binance, Huobi, Curve, PancakeSwap, and others. According to blockchain explorer Etherscan, TUSD has over 51,500 token holders. It has also maintained relative stability, albeit hovering around $0.99.
TrueUSD vs Other Stablecoins
TUSD is one among over 200 stablecoins in the crypto market. Many of these assets have their values pegged 1:1 to the U.S. dollar. However, the ERC-20 token sets itself apart through several features. Here, we will discuss the similarities and differences between TUSD vs. USDT vs. USDC vs. DAI.
Although different companies issue these four stablecoins, they share some similarities. They try to maintain a 1:1 peg to the U.S. dollar. Most of them (USDT, USDC, and TUSD) adopt a USD reserves model. Hence, they have become a well-sought-after option for stablecoins among users.
The increased use of these stablecoins is reflected in their individual market capitalization. Currently ranked as the fourth largest stablecoins in the crypto market, they have a market cap between $3 billion to $83 billion.
Investors can typically find all four stablecoins on popular crypto exchanges, such as Binance, Coinbase, KuCoin, Huobi, etc. They are also supported by other digital Web3 wallets like Trust Wallet.
They are also natively launched on the Ethereum network. However, they are actively exploring several blockchain networks aside from the Ethereum mainnet as they go multichain. Furthermore, these stablecoins undergo frequent audits, bolstering users’ trust and transparency.
Below is a table discussing the dissimilarities between the four leading stablecoins, USDT, USDC, DAI, and TUSD:
|Supported Blockchains||Tron, Ethereum, Algorand, Avalanche, Polygon, Solana, Tezos, Kusama, EOS.IO, Liquid||Ethereum, Algorand, Avalanche, Tron, Polygon, Solana, Hedera, Flow, Stellar||Ethereum, BNB Chain, Polygon, Avalanche, Harmony, Fantom||BNB Chain, Ethereum, Tron, Avalanche, , Polygon, Fantom, Arbitrum, Cronos, Optimism, Aurora|
|Reserves Attestation||BDO Italia||Deloitte||Callisto Network Security Department||The Network Firm LLP|
|Current Market Capitalization||$83.2 billion||$26.2 billion||$3.9 billion||$3.4 billion|
|Market Capitalization Rank||#3||#6||#18||#21|
|Supported Exchanges||Binance, Bitfinex, Huobi, Coinbase, Kraken, KuCoin, OKX, BitStamp, and more.||Coinbase, Binance, Bittrex, Kraken, KuCoin, Kraken, OKX, Huobi, and more.||Binance, Coinbase, Kraken, BitStamp, Huobi, KuCoin, Bitfinex, and more.||Binance, Bittrex, Upbit, Bitget, BitMart, and more.|
After considering the similarities and differences between TUSD vs. USDT vs. USDC vs. DAI, each investor is left with a decision about whether to choose TUSD ahead of other stablecoins or not. The comparison between the four leading stablecoins shows that USDT takes a lion’s share in the stablecoin market. TUSD, on the other hand, ranks as the fourth leading stablecoin, trailing USDC and DAI.
Cryptocurrency Exchanges That Support TUSD
There are several cryptocurrency exchanges where you can buy and sell TUSD. Here is a list of notable centralized platforms that support the TUSD stablecoin:
These platforms allow users to convert TUSD into fiat currency, and vice versa.
TUSD is also supported by decentralized exchanges. Here are some examples:
Crypto lending platforms also allow investors to gain exposure to the TUSD stablecoin. These platforms include:
Frequently Asked Questions
What kind of cryptocurrency is TUSD?
TUSD is a USD-backed stablecoin built on the Ethereum network. This implies that the cryptocurrency endeavors to keep its value pegged 1:1 to the U.S. dollar. TrueUSD uses smart contracts to facilitate minting/redemption processes. The stablecoin bolsters transparency by giving attestation reports in real-time.
What does the TUSD feature “secured minting” refer to?
TrueUSD “secure minting” refers to the automated mechanism through which the ecosystem processes the creation of new tokens. Using Chainlink’s Proof of Reserves, TUSD algorithmically coordinates how new tokens are minted while monitoring off-chain reserves in real time. The data gathered in the process helps to give real-time information about the stablecoin reserve while ensuring that each TUSD is backed by an equivalent amount of U.S. dollars held in reserve.
In what year was TUSD natively launched on BNB Chain?
TUSD natively launched on the BNB Chain on April 12, 2023. Launching on the BNB Chain allowed users on the blockchain to easily access the stablecoin and use it for different on-chain activities, such as NFTs, decentralized finance (DeFi), blockchain gaming, metaverse, and others.
Is TrueUSD safe?
One of the factors to consider when studying the safety of a stablecoin is its reserves. The healthiness of a stablecoin’s reserves directly affects how well the asset will perform.
According to its official website, TrueUSD reserves entail that each TUSD is worth a dollar. Hence, the stablecoin issuer boasts of a healthy reserve for users’ stablecoin. Moreover, TUSD features a real-time audit report enabling anyone to view the stablecoin reserves.
Meanwhile, stablecoins may become volatile during periods of peak market action. In such scenarios, TUSD typically goes below its $1 peg and may take a while to recover.
This article discussed what TrueUSD stablecoin is and compared it with other leading stablecoins in the cryptocurrency space. It also outlined several platforms through which users can buy and sell TUSD. As you decide whether to purchase the stablecoin or not, be sure to do your own research and take calculated risks.
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