What Is TUSD?
TUSD (TrueUSD) is a stablecoin that maintains a 1:1 peg with the US dollar, ensuring its stability and reliability as a digital currency equivalent to the US dollar.
Background
Launched in 2018, TUSD is issued and managed by TrustToken, a company that specializes in the creation and management of asset-backed tokens. TUSD was one of the first stablecoins to be launched after the surge in popularity of cryptocurrencies and has since expanded its offerings to include other currency-pegged stablecoins.
How It Works
TUSD is created (minted) when users deposit US dollars with TrustToken; these dollars are then held in a third-party escrow account to back the stablecoin. Conversely, TUSD is destroyed (burned) when it is redeemed for US dollars. This minting and burning mechanism ensures that the supply of TUSD is always aligned with the amount of USD held in escrow, maintaining its stable value.
Five Key Takeaways
- 1:1 US Dollar Peg: Each TUSD token is always equal in value to one US dollar, providing a stable, digital alternative to USD.
- Secure Storage: The US dollars that back TUSD are stored in third-party escrow accounts, enhancing security and trust.
- Elastic Supply: The supply of TUSD expands and contracts in response to deposits and redemptions, ensuring its value remains stable relative to the US dollar.
- Multi-Platform Availability: TUSD is available on multiple blockchain platforms, including ERC-20 (Ethereum), BEP-20 (Binance Chain), and TRC-20 (TRON).
- Expanded Stablecoin Offerings: In addition to TUSD, TrustToken also issues other fiat-pegged stablecoins like TGBP (British Pound), TAUD (Australian Dollar), TCAD (Canadian Dollar), and THKD (Hong Kong Dollar).
