CDS Collaboration TrueUSD Becomes First USD-backed Stablecoin
Collaboration

TrueUSD Becomes First USD-backed Stablecoin

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TrueUSD Becomes First USD-backed Stablecoin

Recently, it was revealed that TrueUSD (TUSD) is now securing coin minting and enhancing transparency and dependability by utilizing Chainlink‘s Proof of Reserves technology.

TrueUSD Becomes First USD-backed Stablecoin

TUSD is introducing a new paradigm of decentralization, transparency, and independent verification as the first stablecoin to programmatically regulate minting with real-time on-chain verification of off-chain reserves.

What is TNF?

The Network Firm LLP (“TNF”), an independent, sector-specific accounting company in the U.S., compiles reserve information for TUSD. With Chainlink’s industry-leading decentralized oracle network, TNF gathers all reserves data (US Dollars stored at financial institutions) in real-time and serves that data on-chain.

Before any new stablecoin is minted, the TUSD smart contract will automatically determine using this “Proof of Reserve” data feed if the overall supply of TUSD would be greater than the total number of US dollars kept in reserve. This automated procedure is enabled by open and independent data feeds and is transparent in the smart contract code. Consequently, it demonstrates TUSD’s dedication to guaranteeing both the TUSD system’s stability and the usability of the underlying dollars by customers and users.

“We’re excited to be using Chainlink Proof of Reserve to enhance the transparency and verifiability of TUSD. As the industry-standard decentralized oracle network, Chainlink helps ensure that TUSD is always collateralized by off-chain fiat reserves, furthering TUSD’s commitment to trust and transparency.”

Ryan Christensen, CEO of Archblock.

About Integration

TUSD consumers may rest easy knowing that they have a reliable, readily available, and transparent source of information regarding the reserves backing TUSD, thanks to this integration of Chainlink’s decentralized infrastructure. TUSD will ultimately become a more trustworthy form of payment and collateral for DeFi and other smart contract verticals.

“We are proud to support TUSD in its efforts to bring new layers of transparency, risk management, and security to its stablecoin minting process. With Chainlink Proof of Reserve, TUSD is able to provide greater levels of assurance and confidence to its users, and help bring greater stability to stablecoins and the broader crypto industry.”

Sergey Nazarov, Co-Founder of Chainlink

References

trueusd.medium.com

Written by
lectertodd

Lectertodd is 25 years old. She graduated from Çankaya University, Department of Psychology, in 2021. She actively works as a writer, translator, and editor for various websites. Moreover, she loves reading, researching, and learning new things.

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