TUSD is the first digital asset with live on-chain attestations by independent third-party institutions and is backed 1:1 with the U.S. dollar (USD). So far, it has been listed on more than 100 trading platforms such as Binance and Huobi and is live on 12 mainstream public chains, including Ethereum, TRON, Avalanche, BSC, Fantom, and Polygon.
TrueUSD is attested to in real-time by an independent, industry-specialized accounting firm in the U.S., to ensure the 1:1 ratio of its USD reserve to the circulating token supply and the 100% collateral rate. With the integration of Chainlink PoR, TrueUSD becomes the first USD-Backed stablecoin to secure minting and further ensure transparency and reliability. Users can access the relevant data via the official website tusd.io at any time. TUSD is granted statutory status as authorized digital currency and medium of exchange in the Commonwealth of Dominica, a country in the Caribbean, effective on October 7th 2022.
How Does TUSD Work?
TUSD operates using smart contracts on the blockchain, enabling the issuance and redemption of a tokenized version of the U.S. dollar. When users wish to buy TrueUSD, they must first transfer USD to a designated bank account. Once the transfer is received, a smart contract will automatically generate and send the corresponding amount of TUSD tokens to the user’s wallet, effectively adding them to the circulating supply of tokens.
When a user sells their TrueUSD, a smart contract instantly eliminates the redeemed tokens by burning them, permanently removing them from TUSD’s circulating supply. Simultaneously, the platform credits U.S. dollars to the user. One of the advantages of utilizing TrueUSD is that it doesn’t impose fees for purchasing or redeeming transactions. The firm earns its income by accruing interest on the U.S. dollars held in its accounts.
When a user buys TrueUSD on a cryptocurrency exchange, they are essentially purchasing TUSD tokens from another holder on the secondary market. The transaction takes place within the exchange’s internal ledger and doesn’t directly interact with the underlying TUSD smart contract on the Ethereum blockchain. The expansion of TUSD across various blockchain networks has contributed to its adoption and utilization in decentralized finance (DeFi) applications. Currently, TrueUSD can be found on multiple blockchain networks such as BNB Chain, Polygon, Avalanche, Tron, and Ethereum.