TrueUSD (TUSD) Stablecoin Review
- Financial Institutions
TrueUSD (TUSD) is a stablecoin pegged to the US Dollar. Issued and maintained by TrustToken, TUSD is recognized as the first stablecoin launched with a core focus on transparency. Users can purchase and redeem TUSD at a 1:1 rate on the TrustToken platform for US Dollars.
TrueUSD Stablecoin - 2020 Comprehensive Review
Listed and trusted by major exchanges, TrueUSD is one of several emerging stablecoins playing a significant role in the blockchain ecosystem.
TUSD’s established market presence has greatly improved the overall perception and reputation of stablecoins as a result of being the first fully transparent stablecoin on the Ethereum blockchain.
TrustToken is expected to launch more tokenized currencies in the coming year - with TCAD, TAUD, and TGBP, and THKD already announced.
Find out below if TUSD is the ideal stablecoin for your needs.
TrueUSD Stablecoin Overview
|Exchanges||Kucoin, Binance, Upbit, OKEx, KyberSwap, Bittrex Global, Bitfinex, Huobi Global, Gate.io, Binance DEX, IDEX, Uniswap, HitBTC|
|Hardware Wallets||Ledger, Trezor|
About TrustToken Company
TrustToken is an asset tokenization platform that intends to bring the benefits of blockchain technology to traditional asset classes. Currencies, precious metals, real estate, and more are expected to be tokenized - introducing the appealing potential for fractional ownership to investors.
TrustToken believes the tokenization of these traditional assets will enable investors to access previously illiquid opportunities on a global scale.
A compliance first approach, strong backing (a16z, BlockTower Capital, Stanford-Startx Fund), and an experienced team have all led to the early success of TrueUSD.
What Is TUSD?
TUSD is the first asset token created on the TrustToken platform.
It represents tokenized US Dollars on the Ethereum blockchain and enables immediate entry and exit to crypto markets without the settlement time constraints that occur with traditional banking.
TUSD is an ERC20 standard token, enabling operation within the expansive and rapidly evolving Ethereum blockchain ecosystem. Open source smart contracts power TUSD transactions available to users 24/7/365.
The issued and circulating supply is fully collateralized and backed by USD in FDIC insured bank accounts.
How Does TUSD Work?
TUSD uses smart contracts on the Ethereum blockchain in order to provide a tokenized version of the US Dollar.
When TUSD is purchased from TrustToken with USD, a smart contract automatically creates and issues the equivalent amount of TUSD to the circulating supply.
When TUSD is redeemed from TrustToken, that smart contract in turn automatically destroys and burns the amount of TUSD withdrawn from the circulating supply.
Currently there are no fees to purchase and redeem TUSD with TrustToken. TrueUSD earns revenue for TrustToken by accumulating interest on the USD held in company accounts.
Traders know they can redeem TUSD for USD at spot with TrustToken, creating natural market arbitrage opportunities that lead to the stablecoin maintaining its peg to the dollar.
Is TUSD Safe?
TUSD is currently one of the safest stablecoins available:
Regulated & Compliant - TrustToken is fully licensed and operates within the required legal framework of US regulations.
Audited - Monthly attestations and reports by Cohen & Co ensure that TUSD maintains collateralized funds held in escrow to back it’s issued supply.
Insured - Token holders are legally protected against misappropriation and TrustToken company accounts are FDIC insured.
Multi-Party Escrow - TrustToken utilizes third party trust companies to eliminate their direct access to user funds.
Security - TrustToken’s smart contracts have been independently audited by three separate security firms with no reported issues to date.
Why Use TUSD?
- Investors and traders can enter crypto markets without immediate exposure to volatility.
- Investors and traders can quickly exit volatile crypto markets to the stability of TUSD.
- Audits are published monthly confirming the circulating issued supply is collateralized 1:1 with US Dollars in FDIC insured bank accounts.
- TUSD can easily be stored in personal ERC-20 compatible wallets, reducing third party risks to the users holdings.
- Liquidity and trading pairs are increasing month over month.
Purchase & Redeem TUSD
*In order to purchase and redeem TUSD through TrustToken directly, users must complete a KYC (Know Your Customer) process.
- Create an account:Trust Token Portal: Purchase and Redeem TrueCurrencies
- User wires funds to the partnered trust company escrow account. Trust company automatically notifies the TrueUSD smart contract that funds have been received.
- The equivalent amount of TUSD is minted and sent to the Ethereum address provided by the user.
- User is now in possession of TUSD
- User sends the desired redemption amount in TUSD to the TrueUSD smart contract found in their account dashboard.
- The TrueUSD smart contract then automatically notifies their partnered trust company where funds are escrowed.
- The partnered trust company then wires the equivalent USD amount to the user’s specified bank account.
*TrustToken does not currently charge any fees to purchase or redeem TrueUSD, however the user may incur charges from their respective bank.
TrueUSD (TUSD) Exchanges
*We only include exchanges that pass our reputability standards
*Minimum monthly average 24h volume of $10,000 USD
TrueUSD (TUSD) Wallets
|Ledger Nano M||7/10||Mobile Application||$96.00|
Any software, browser based, or hardware wallet that supports the Ethereum standard ERC-20 can be used to store TUSD.
Detailed information, reviews, and best security practices for cryptocurrency wallets is readily available in our complete guide to cryptocurrency wallets.
For substantial TUSD balance holders, Blockfer strongly recommends the use of a personal hardware wallet.
TrueUSD Borrow Rates
|Platform||APR Rate||Collateral LTV||Loan Amounts|
|Celsius Network||3.46% - 6.26%||25% - 50%||$1,500 - $1,000,000|
|Nuo Network||7.16%||50% - 70%||$25 - $40,000|
TrueUSD Interest Rates
|Platform||APY Rate||Lockup Terms||Deposit Amounts|
|Nuo Network||0.00%||Flexible||$1 - $50,000|
|Celsius Network||11.55%||Flexible||$1 - $100,000|
|Nexo||10%||Flexible||$1 - $2,000,000|
|Crypto.com||6% - 10%||3 Months||$25 - $1,000,000|
TrueUSD Stablecoin Alternatives
Pros and Cons
- ERC20 - TrueUSD can easily be stored in personal hardware wallets where users maintain ownership over the private keys.
- Liquidity - TrueUSD trades with reasonable volume on several top exchanges, including Binance and Bittrex.
- Audited - Audits are performed monthly by the accounting firm Cohen & Company, ensuring customers that TrueUSD tokens are in fact backed 1:1 by USD.
- Legally Compliant - TrueUSD is a fully regulated, licensed, registered US entity.
- FDIC Insured - Company bank accounts are insured up to $250,000.
- Multiple Currencies - TrustToken has issued TrueGBP, TrueAUD, & TrueCAD with more currencies planned in the future.
- Centralized - TrueUSD can be frozen or even confiscated in the event that TrustToken has reason to believe users have broken the terms and conditions of use, more specifically - the laws and regulations the company abides by.
- KYC (Know Your Customer) & AML (Anti Money Laundering) - Required for purchase and redemption. While we are hesitant to list this as a negative aspect, there are individuals in the blockchain space that believe privacy is mandatory.
Frequently Asked Questions
What is TrueUSD (TUSD)?
TUSD is an ERC20 stablecoin pegged 1:1 to the US Dollar. TUSD is regulatory compliant, audited monthly, and fully collateralized 1:1 in US Dollars.
Is TrueUSD (TUSD) an ERC20?
Yes. TUSD is exclusively issued as an ERC20 token on the Ethereum blockchain.
Is TrueUSD (TUSD) safer than Tether (USDT)?
TrueUSD is by all measurable factors considerably safer than USDT. For a complete analysis, see our TUSD vs USDT comparison.
Where can I buy TrueUSD (TUSD)?
Users looking to purchase TUSD with fiat can do so directly through the TrustToken platform. TUSD can be purchased with crypto on several major cryptocurrency exchanges including Binance, OKEx, and Bittrex.
Can I earn interest on my TrueUSD (TUSD)?
TrueUSD has emerged as a legitimate contender in the stablecoin marketplace. Transparency, maturing liquidity, and a compliance first approach has cemented its status as an alternative to USDT.
The Ethereum blockchain has proven capable of providing the necessary security, wallet infrastructure, and smart contracts required for TUSD to thrive.
In the coming years TrustToken expects to issue additional currencies as stablecoins as well as tokenized fractional ownership for asset classes including real estate, gold, and bonds.
|Learn More||Best Features|
TrueUSD Official Website
Legal & Regulation - Facts & Figures
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Our mission is to provide the most informative, unbiased, and useful reviews and comparisons possible for products and services in the blockchain finance industry. Assessments are powered by experts with years of relevant experience.
The stablecoins found in this category have been researched extensively by our team as part of the review process. Factors we analyze in our stablecoin reviews and comparisons include: trading volume, listings, purchase and redemption process, issuer trust, collateral type, borrow rates, interest rates, and wallet compatibility.
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