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The Advanced Guide to TrueUSD - Everything About TrueUSD

Michiel Mulders
August 2, 2020
TrueUSD, TUSD, stablecoins, crypto loans, crypto loan, buy TUSD

TrueUSD, also known as TUSD is a cryptocurrency from the breed of stablecoins. Does the name of TrueUSD ring a bell? Yes, it's one of the leading stablecoins today. 

TrustToken, a San Francisco-based company launched TrueUSD in March 2018. TUSD is an ERC-20 token and pegged to US dollars at a 1:1 ratio. It’s the fifth most popular stablecoin with a current market cap of around $137 million. TUSD ranks 55th in the list of crypto-assets ranked by market cap. You must be wondering how TUSD is different from other stablecoins. Let's dive into it.

Characteristics of TrueUSD 

#1. Regular Audits

TrueUSD conducts regular attestations of escrow balances along with its full collateral. They have also ensured that the TrueUSD holders are legally protected against the misappropriation of the USD reserve. Hence, the token holders can rest assured that their investments in TrueUSD are secured.

#2. Medium of exchange for businesses and consumers

 TrustToken team believes that a stable trading instrument was long-awaited by the crypto traders and TrueUSD will be able to solve their needs. Thus, TUSD will act as a medium of exchange between businesses and consumers. 

#3. Stability

The TrueUSD team built the TUSD token intending to offer a stable and trustworthy stablecoin to the crypto community. TrustToken created the token by backing its value with assets that can be purchased and sold anywhere in the world. 

#4. US Dollar Backed

TrueUSD or TUSD, a stablecoin, is the first of the asset token launched by TrustToken and it is redeemable with USD at a 1-for-1 ratio

#5. Partnerships With Banks

TrustToken has partnered with leading banks and fiduciaries to hold the funds backing the value of TUSD securely. 

#6. Use of Escrow

The banks and fiduciaries handle all the escrowed funds and the TrustToken team is unable to access the funds available in the escrow account. This step was taken to increase the amount of security of the funds. 

#7. Active AML and KYC process

TrustToken team sends newly minted TUSD to the user's Ethereum address in the amount equal to the USD amount sent by the user. This process is initiated after the completion of the AML/KYC process and transfer of the funds to a third-party escrow account. Each TUSD token comes with a redeemable certificate for $1 that is stored in the escrow accounts. 

Earn Interest on Your TrueUSD Tokens

There are many ways of earning through cryptocurrencies and the major way investors earn a profit is by buying a crypto coin at a low price and selling it at a higher price. However, there are more ways to earn from your crypto investments.

We are specifically talking about TrueUSD here, which is one of the top-most stablecoins in the market today. You can earn from your TrueUSD investments just like you earn interest from the money that you have kept with traditional banks. 

The process of earning interest on your money by depositing in a traditional bank is quite simple. It starts with opening a savings account at any bank, including some of the leading banks like HSBC or Standard Chartered Bank. After opening a savings account, you keep your funds with the bank. Now, they will give you a percentage of interest on your funds as they want to use your money to make other investments. 

There used to be a time when these banks offered an interest rate of 5%-10% to their savings account holders. It's not the same anymore and today, the same banks offer interest at a rate even lower than 1% to its savings account holders. You are losing a bit of your in money held in your savings account due to the current inflation rate being higher than the interest rate offered by the banks. 

The above case is not yet applicable to your stablecoin investments. There are many companies in the market today that can offer you an interest ranging from 5% to 12% on your stablecoins. That is an incredible rate of return on your investments when comparing it with the interest rate offered by the traditional banks. 

The current situation of offering higher interest rates may change in the future as the interest rates are subject to market conditions. However, it cannot be disputed that the stablecoins have proved to be much better compared to investing in traditional savings accounts. Why wait? You can start earning interest at a rate of 12% per annum on your TUSD holding right away on YouHodler.  

How TrueUSD Differs From the Other Cryptocurrencies?

#1. The key difference among TrueUSD and the majority of the other cryptocurrencies is that the TrueUSD is a stablecoin. It means that the value of the TUSD tokens in circulation is backed by an equal amount of real-world assets. Hence, it’s not as volatile as the majority of the cryptocurrencies. 

#2. TrustToken team does not have access to the user funds as it is held in a third-party escrow account. 

#3. The TrueUSD team has implemented many steps to ensure that its platform is secured. 

#4. Unlike Tether, its biggest competitor in the Stablecoin market, TrueUSD token is subject to regular scrutiny and hence it is more trustworthy. 

Conclusion

TrueUSD is gaining quite a name for itself based on its transparency and usefulness. There's no doubt about its legitimacy and it has a very high chance of becoming the top-most stablecoin. The TrustToken team executed the TrueUSD project brilliantly by focusing on making it fully compliant and transparent stablecoin. It has proved itself to be a worthy competitor for Tether. We may very well see TrueUSD dethrone USDT soon. 

TUSD is an Ethereum blockchain-based token. Thus, TrueUSD is using an infrastructure that will allow it to grow and thrive further as it is leveraging Ethereum blockchain. The Ethereum blockchain offers a powerful wallet infrastructure along with proven security and smart contacts to TUSD tokens. It allowed the TUSD project to launch faster, which otherwise wouldn't have been possible. 

TrustToken has many exciting projects in its kitty that interest us and it may come to fruition anytime soon. These projects will help TrustToken in leading the asset-backed crypto market. The TrustToken team is planning to come out with some really interesting projects and these include these upcoming tokens will be backed by real estate, commodities, bonds, among others. It will also affect TrueUSD in a good way as more and more users will know about it and start purchasing it. 

TrustToken is bringing something revolutionary to the market as they are bringing the concept of fractional ownership through their multiple asset-backed to the forefront. This will benefit the users who otherwise wouldn't have been able to invest in a particular asset class. 

This article is created by YouHodler to raise awareness for our crypto loan offering. We help you with quickly establishing loans for major fiat currencies such as EUR, USD, CHF, and GBP collateralized with cryptocurrencies.

About the Author
Contributor

Michiel Mulders is a blockchain developer with a passion for the crypto space. His interests include blockchain, entrepreneurship, marketing, and carefully crafted beers. Cheers!

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