TrueUSD (Ethereum)

TUSD

TrueUSD is a stablecoin backed by USD reserves held by TrustToken's partner banks.

Risk Rating
Good
$1.00
0.06%
Summary
What we like
TUSD is a fully collateralized stablecoin with publically verifiable attestations. TUSD also uses multiple escrow accounts to reduce counterparty risk and to provide token holders with legal protections against theft.
What we like less
Token holders are exposed to centralization risks. TrustToken custodies the USD reserves and controls the minting and redemption of TUSD. TrustToken can also freeze a user's account or confiscate their holdings if deemed to be in violation of terms of use.
What it means for you
TUSD offers you a popular, liquid instrument to hedge your portfolio in volatile market conditions, and can also be put to use to earn yield across DeFi.
Information
Blockchain
  • Ethereum
Key Metrics
  • Market Cap: $510.5M
  • Fully Diluted Valluation: $510.5M
  • FDV / MC: 1
  • Ranking inside Exponential (among stables): #6
  • Circulating Supply: 509,701,467
  • Total Supply: 509,701,467
  • Volume (24H): $29.7M
  • ATH: $1.62 (08/26/2018)
  • ATL: $0.88 (03/12/2020)
Risk Assessment
Good
Asset Strength

TUSD is a mid-cap asset with questionable collateral reserves. This asset depends on a centralized entity for custody services.

TUSD is a stablecoin that usually trades within 20bps of its peg to USD, which makes it a solid store of value.

Asset Tokenomics

TUSD does not have a supply schedule. TUSD on Ethereum is backed 1:1 by USD reserves held with TrustToken's partner banks.

Asset Volatility

TUSD is a stablecoin that usually trades within 20bps of its peg to USD, which makes it a solid store of value.

Dependencies

TrueUSD (Ethereum) has no dependencies.

Things to know about TUSD

Who invented TUSD?

TUSD is a stablecoin introduced in early 2018 by TrustToken. TrustToken is a platform designed to create asset-backed tokens in the crypto ecosystem. The team comes out of Standford, UC Berkeley, Palantir, and Google, and its investors include Founders Fund Angel, Stanford StartX, and Blocktower Capital. The team has developed a legal framework for collateralized digital assets and has a network of fiduciary, compliance, and banking partners.

How does TUSD work?

TUSD is a fully collateralized stablecoin designed to address the immediate needs of crypto exchanges, traders, and protocols. Traders and exchanges need a trustworthy stablecoin to hedge against market volatility, and to enter crypto markets without immediate exposure to BTC/ETH. TUSD's holdings are distributed across various bank accounts belonging to various trust companies. All parties have signed a binding agreement to conduct monthly audits and publish attestations. The token uses multiple escrow accounts to reduce counterparty risk and ensure token holders are legally protected against misappropriation. A user can buy newly issued TUSD through the TrustToken platform with USD (linked to a bank account). A smart contract then automatically mints the equivalent amount of TUSD (increasing the circulating supply) and sends it to the user's Ethereum address. Similarly, a user can redeem TUSD via TrustToken by sending the TUSD back to the smart contract. It will then automatically burn TUSD (removing from circulating supply) and simultaneously credit the user's bank account with an equivalent amount of USD. TrustToken doesn't charge any purchase or redemption fees on TUSD transactions. The company instead generates revenue by collecting interest on the USD held in custody.

How secure is TUSD?

Every TUSD token has the equivalent amount of USD value stored in a bank. The price stability of TUSD is managed through arbitragers as TUSD is always redeemable for its underlying USD, provided the user has passed KYC/AML checks. The minimum amount of TUSD for withdrawal at any time is $10K. TrustToken is also a regulatory-compliant company with all escrow account holdings subject to monthly attestations that are published live. Nonetheless, TrustToken is a fully centralized company with the ability to freeze a user's account or blacklist their tokens (if in breach of terms of use).