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Stablecoin

Crypto

A multi-chain stablecoin based on the Ethereum blockchain, TrueUSD (TUSD) is a great holding for those seeking liquidity and stability.

In the last few years, the world of digital currencies has experienced phenomenal growth. Data collected by 

 suggested that the total number of cryptocurrencies in the world was close to 10,000, with a combined 

 of about $1.3 trillion. As of 2023, the average daily crypto trading volume of $35 billion and the average trading volume of all stablecoins is about $31.12B, which is 92.36% of the total crypto market 24-hour volume as of early Mar 2023. Sure we know the crypto market is dominated by 

 are fundamentally important to keep the sanity of the crypto trading market. With all the buzz surrounding USDT and BUSD stablecoins, one could not help to question if TUSD could live up to its expectation — the first regulated stablecoin fully backed by the US Dollar.

In this article, we zoom in on TUSD: What it is, how it works, steps for buying the stablecoin, and more.

 is a platform designed to create asset-backed tokens in the crypto space. The company's website demonstrates an ambition to tokenize assets like oil, movies, timeshares, rental properties, small businesses, and more.

TrustToken has a driven and competent team, with employees hailing from 

. The company's core team comprises its four co-founders: CEO Danny/

 is a fully collateralized and legalized stablecoin that is pegged to the US dollar at a 1:1 ratio. It was introduced to the market in early 2018 and built on the TrustToken platform.

For more context, stablecoins are cryptocurrencies pegged to a less volatile asset like a fiat currency or commodity that help to sustain a steady value despite the market volatility.

TrueUSD's dollar holdings are distributed across various bank accounts belonging to different trust companies. All involved parties have signed a binding agreement to conduct monthly audits and publish collateralized holdings. The TrueUSD token uses multiple escrow accounts to reduce counterparty risk and ensure token holders are legally protected against theft.

TrueUSD is an ERC-20 token that utilizes smart contracts to enable a tokenized version of the U.S. dollar to be issued and redeemed.

When a user buys TUSD via the TrustToken platform with U.S. dollars, the 

 underlying the platform automatically generates and issues the equivalent amount of TUSD, which becomes a part of the token's circulating supply.

When a user redeems TUSD through TrustToken, a smart contract automatically burns the tokens being redeemed or removes them permanently from the TUSD circulating supply. Simultaneously, the platform credits the user with a U.S. dollar amount equal to the amount of TUSD redeemed.

TrustToken doesn’t charge purchase or redemption fees on TUSD transactions. Instead, the company generates revenue by collecting interest on the U.S. dollars held in its accounts.

With TrustToken, traders are aware of their ability to buy and sell TUSD at a 1:1 ratio, creating a natural opportunity for 

 in the market and keeping the token at its peg to the dollar.

Every TUSD token has the equivalent U.S. dollar value stored in the bank to back it.

A TUSD token is collateralized by U.S. dollars held in the escrow account company so that the market recognizes the inherent value of TUSD as being equal to the price of the underlying USD. New TUSD tokens are minted and burned by publicly-audited smart contracts to ensure stability.

The TrustToken platform never discourages or prevents legitimate redemptions from verified customers. If an individual or organization passes the anti-money laundering (

) checks on the TrustToken platform, they can redeem TUSD for USD. At any time, the minimum amount of TUSD for withdrawal is $10,000.

TrueUSD's system is set up in a manner that allows you to exchange USD directly with third-party escrow accounts, instead of having to wire money through the TUSD network.

The TrustToken platform ensures the long-term survival of the TUSD stablecoin through regulatory compliance. All escrow account holdings are subjected to regular (monthly) attestations that are published openly.

At the time of this writing, the price of TUSD is $1.00, with a 24-hour trading volume of roughly $1.2 billion.

on CoinMarketCap, with a market capitalization of approximately $1 billion and a current circulating supply of about 1.4 billion TUSD coins.

TUSD's price is designed to stay as close as possible to the U.S. dollar, but slight fluctuations tend to occur. The U.S. dollars that TrueUSD holds are distributed among a few trusted banks, and the stablecoin issuer doesn't have access to this money — a precautionary measure against any form of price manipulation.

). Both of these tokens act similarly, bringing more liquidity to the crypto markets.

The price of TUSD currently stands at approximately $1.00. Based on 

 safety rank as of May 4, 2022, with TUSD’s value 

in 2022. The algorithm-based prediction provided by 

 is based on a steady analysis of TUSD over the last six months, with a market cap as the dominant ranking factor.

That said, the analysis and insights provided here or on any other site should not be considered investment advice, as cryptocurrencies are

. We suggest you conduct thorough research before making any investment. When you do invest, the best practice is to invest only what you can afford to lose.

Before you purchase TUSD, it’s important to choose a 

 that best suits your needs. A hardware wallet is often considered the safer choice but might prove inconvenient for active crypto traders. On the other hand, a software wallet is more accessible for regular trading. The caveat is that you’ll have to choose your provider carefully, as not all providers are trustworthy.

When you have your wallet set up and ready, head over to a crypto exchange (e.g., 

) to acquire TUSD. Create an account on the exchange by filling in your name, email ID and other personal information. Once you’ve successfully registered, you can proceed to either purchase TUSD with fiat money or exchange other crypto assets you hold for it.

If you’re exchanging another crypto for TUSD, the process is quite simple — just select the amount of TUSD you wish to acquire, and choose the crypto you wish to swap it with.

If you want to buy TUSD using fiat money (e.g., U.S. dollars, euros, Brazilian Real), you can do so by paying with one of the following methods:

Using a debit card, credit card or bank transfer is the easiest option for new users who wish to purchase TUSD.

You can buy TUSD directly from other users on the exchange's available 

You can check the exchange to find the available options for third-party payment channels such as 

Thanks to its near-zero risk of liquidity problems, TUSD is a safer investment choice than other tokens that are popular among 

. Theoretically, TrustToken can issue as much TUSD as demanded by users and supply the exact amount of dollars required, making the token attractive to investors of all portfolio sizes.

Stablecoins like TUSD do not appreciate in value, since they’re pegged to real-world assets. Having said that, investors can still invest in TUSD, just as they would in foreign currencies. After all, TUSD is backed by the U.S. dollar, 

 and is likely to keep its top spot for the foreseeable future. TUSD is certainly a stablecoin to keep your eyes on.

TrueUSD (TUSD) Stablecoin: Is It Truly Reliable?

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