TrueUSD

TrueUSD Review

Similar to Tether and Paxos, that we have mentioned on Cryptowisser before, TrueUSD is a fully USD-collateralized cryptocurrency. Tether, on the other hand, are not subject to public or open audits, which question the validity of their claims. Also, large pumps and dumps of Bitcoin has coincided with large amounts of UDST being printed, which seems a little bit fishy.

TrueUSD have “real” legal protection, while they are also transparently audited by third-party attestations. They also employ multiple escrow accounts to reduce the counterparty risk, but also to offer token-holders legal protection again misappropriation.  Moreover, they have built their asset token on the TrustToken-platform, which gives the holder asset-backed tokens to easily trade across the world. In example, users can transact gold to gold tokens or similarly, dollar to dollar-tokens via the TrustToken platform.

Solution

So, TrueUSD comes as a ERC20-token on the Ethereum blockchain. They also operate on smart contracts to validate transactions made between banks, users and institutions. Virtually anybody can trade or redeem TrueUSD to USD or the other way around, given that they have passed the KYC/AML checks that the company employ. After one has passed the KYC/AML check, the smart contract initiates a transaction on the blockchain. Subsequently, the escrow bank available for your region or size of transaction will transact the actual USD to the named bank account. This way, the TrueUSD infrastructure never touches the actual FIAT currency. Also, the trust companies can handle purchasing and receipts of the users money through escrow accounts.