TrueUSD wallet

What is TrueUSD

History

TrueUSD (TUSD) is a stablecoin that was launched in January 2018 by TrustToken, a company based in San Francisco. The primary goal of TrueUSD was to create a stable and transparent digital asset fully backed by the US dollar, addressing the volatility issues that plagued other cryptocurrencies. TrueUSD was one of the first stablecoins to be fully collateralized, meaning that every TUSD token is backed 1:1 by US dollars held in escrow accounts. This design aimed to provide users with confidence in the token's stability and security, distinguishing it from other early stablecoins that lacked such transparency.

Over time, TrueUSD gained attention for its regulatory compliance and transparency, with regular audits provided by third-party accounting firms to verify the reserves backing the token. Despite the emergence of numerous other stablecoins, TrueUSD has remained a significant player in the stablecoin market due to its early entry and adherence to its transparency promise.

Creators and Developers

TrueUSD was created by TrustToken, a blockchain company co-founded by Rafael Cosman, Stephen Kade, and Tory Reiss. TrustToken was established with the mission of tokenizing real-world assets, and TrueUSD was the first product launched by the company. Rafael Cosman, who served as the CEO, was particularly instrumental in shaping the project. The team brought together expertise in finance, law, and blockchain technology, ensuring that TrueUSD was not only technically sound but also compliant with regulatory standards. TrustToken has since expanded its offerings but TrueUSD remains one of its flagship products.

Technology

TrueUSD operates primarily on the Ethereum blockchain as an ERC-20 token. This means it leverages Ethereum's smart contract functionality to ensure the issuance and redemption processes are transparent and secure. The token's smart contract is designed to interact with multiple escrow accounts, where the actual US dollars backing TUSD are held. These accounts are managed by various trusted third-party fiduciary partners, providing an additional layer of security and trust.

TrueUSD's technology stack includes regular attestations of the USD reserves, provided by third-party accounting firms like Cohen & Company. These attestations are published regularly to ensure that the supply of TUSD tokens matches the amount of USD held in reserve, reinforcing the token's stability and trustworthiness.

Issuance and Supply

TrueUSD uses a collateralized issuance model. When users purchase TUSD, the equivalent amount of US dollars is deposited into a fiduciary partner's escrow account. The smart contract then issues the corresponding amount of TUSD to the user. This process ensures that each TUSD is backed by a US dollar in reserve, maintaining the token's 1:1 peg to the dollar. TrueUSD does not have a fixed total supply; instead, the supply expands or contracts based on market demand and the amount of US dollars deposited or withdrawn from the escrow accounts.

TrueUSD does not require mining or staking, as it is not a traditional cryptocurrency that uses a consensus mechanism like Proof of Work (PoW) or Proof of Stake (PoS). The issuance and redemption of TUSD are solely dependent on the deposits and withdrawals of US dollars in the underlying bank accounts.

Networks and Support

TrueUSD was initially launched on the Ethereum network as an ERC-20 token. However, due to growing demand and the need for interoperability across different blockchains, TrueUSD has expanded its support to other networks. It is now also available on Binance Smart Chain (BSC), Tron, Avalanche, and Polygon, among others. This multi-chain support allows users to transfer TUSD across different blockchain ecosystems, enhancing its utility in decentralized finance (DeFi) applications.

In addition to network support, TrueUSD is integrated with various decentralized exchanges (DEXs), lending platforms, and payment systems, making it widely accessible and usable in the crypto economy. Bridges and cross-chain solutions further facilitate the movement of TUSD between supported blockchains, ensuring liquidity and ease of use for traders and investors.