TrueUSD (TUSD)

Stablecoins have become an essential component of the cryptocurrency ecosystem, providing the benefits of digital assets while maintaining price stability. Among them, TrueUSD (TUSD) stands out as one of the first fully collateralized stablecoins backed by the US dollar. Launched in 2018 by TrustToken Inc., TUSD has gained prominence due to its transparency, real-time attestations, and secure escrow accounts. This article explores what TrueUSD is, how it works, its primary use cases, and where users can buy or sell it.

What Is TrueUSD (TUSD)?

TrueUSD (TUSD) coin is an ERC-20 stablecoin that maintains a 1:1 peg with the US dollar. Unlike algorithmic or partially backed stablecoins, TUSD is fully backed by USD reserves held in third-party escrow accounts, ensuring robust security and transparency.

TrustToken, the company behind TUSD, was founded with the mission of bringing credibility to the stablecoin market by providing frequent third-party attestations to verify that the supply of TUSD does not exceed the USD reserves held in escrow.

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How TrueUSD Works

1. USD Reserves and Collateralization

From its inception, TrueUSD was designed to be fully backed by fiat currency. Independent third-party trust companies, including Prime Trust LLC, hold the equivalent amount of USD in escrow accounts. This ensures that every TUSD token is redeemable for one US dollar.

2. Third-Party Attestations

Transparency is a cornerstone of TrueUSD. Initially, TrustToken partnered with Cohen & Company, a US-certified public accounting firm, to conduct monthly audits and attestations from March 2018 to March 2020. By March 2020, the total supply of TUSD exceeded 137 million tokens, backed by over $138 million USD in escrow accounts.

In April 2020, TrustToken transitioned to using TrustExplorer, a blockchain-based assurance dashboard launched by Armanino LLP in December 2019. TrustExplorer provides real-time attestations of USD reserves and TUSD supply.

3. Proof of Reserve and Proof of Supply

To further enhance transparency, in November 2020, TrustToken partnered with Chainlink, a decentralized oracle network, and Armanino LLP to implement Proof of Reserve and Proof of Supply mechanisms. These allow decentralized applications (DApps) to verify in real-time whether the USD reserves match the circulating TUSD supply.

If a discrepancy occurs:

• If TUSD supply exceeds the USD reserve, smart contracts can block transactions.
• If the USD reserve exceeds TUSD supply, transactions proceed as expected.

This innovation makes TUSD the first stablecoin to provide live, on-chain attestations.

Where to Buy and Sell TrueUSD (TUSD)

TrueUSD is widely available across major cryptocurrency exchanges, both centralized (CEXs) and decentralized (DEXs). Some of the most popular platforms include:

Centralized Exchanges (CEXs)

1. Binance – Offers multiple TUSD trading pairs, including TUSD/USDT, TUSD/BTC, and TUSD/ETH.
2. Coinbase – Allows users to buy, sell, and hold TUSD.
3. Kraken – Provides fiat-to-TUSD trading options.
4. Huobi Global – Supports TUSD trading against various cryptocurrencies.
5. OKX – Another popular platform for buying and selling TUSD.

Decentralized Exchanges (DEXs)

1. Uniswap – Allows users to trade TUSD directly from their wallets using Ethereum-based smart contracts.
2. Curve Finance – Specializes in stablecoin swaps, making it an ideal platform for converting TUSD to other stablecoins like USDT, USDC, and DAI.
3. Balancer – Provides liquidity pools with TUSD trading pairs.

TUSD can be purchased using:

• Fiat currency (USD, EUR, etc.) via bank transfers or credit/debit cards.
• Other cryptocurrencies (BTC, ETH, USDT, etc.) through trading pairs on exchanges.

Use Cases of TrueUSD

TrueUSD serves multiple functions within the cryptocurrency ecosystem, making it a versatile and widely used stablecoin.

1. Trading and Liquidity

TUSD is commonly used as a trading pair on exchanges, allowing traders to hedge against volatility and move funds efficiently across platforms. Its peg to the US dollar provides a stable alternative during market downturns.

2. Decentralized Finance (DeFi)

TUSD plays a significant role in DeFi protocols, including:

• Lending Platforms – Platforms like Aave, Compound, and Venus allow users to lend or borrow TUSD while earning interest.
• Yield Farming – Users can stake TUSD in liquidity pools on Curve Finance, Balancer, and SushiSwap to earn rewards.
• Collateral for Stablecoin Swaps – DeFi protocols use TUSD as collateral for stablecoin arbitrage and efficient capital allocation.

3. Payments and Remittances

With its stable value and on-chain attestation mechanisms, TUSD is increasingly used for cross-border transactions, payroll disbursement, and business-to-business (B2B) payments.

4. Institutional Adoption

Many financial institutions and businesses prefer TUSD due to its transparency and regulatory compliance. It offers an ideal solution for companies needing a stable digital asset for settlements and treasury management.

Future Developments

TrustToken continues to enhance the TrueUSD ecosystem by integrating with more blockchains and expanding its real-time auditing capabilities. Potential future developments include:

• Multi-Chain Expansion – While primarily an ERC-20 token, TrustToken is working on launching TUSD on additional blockchains, including BNB Chain, Avalanche, and Solana.
• Improved Compliance Measures – As stablecoin regulations evolve, TrustToken aims to strengthen compliance with global financial regulations.
• Integration with Traditional Finance – Bridging the gap between digital and traditional finance by partnering with banks and financial service providers.

TrueUSD (TUSD) stands out in the stablecoin market due to its transparent reserve system, real-time audits, and strong regulatory compliance. It is a reliable option for traders, businesses, and DeFi users looking for a secure, fiat-backed digital asset. With continuous improvements and growing adoption, TUSD remains one of the most trusted stablecoins in the crypto industry.