Bitcoin and cryptocurrency in general has been seen for some time as the next big trend in market transactions by tech enthusiasts, so it wasn’t too much of surprise when the assets started gaining widespread recognition last year.
What was a surprise to everyone, however, was when the decentralized Bitcoin closed the year of 2017 valued at over $14,000 a token, something that not even the most optimistic of crypto fans would have imagined a year before. This meteoric rise without any significant backing has left many investors confused as how to deal with the new, unpredictable assets.
In the past few months, buzz has been building about stablecoins, a type of cryptocurrency that uses either complex economic models or real world assets to maintain some sort of stability and ensure investor confidence. These platforms are not without their flaws either, as demonstrated by the one coin called Tether. The new token was an Ethereum based cryptocurrency marketed as a stablecoin.
While the market cap of Tether has grown to over $2.2 billion, it still remains largely untrusted by exchanges and investors since the funds backing the token have not been audited since early 2017. That’s where a new startup, TrustToken, has stepped in to offer another type of stable coin: TrueUSD.
TrueUSD’s new platform is the first and only Stablecoin that is 100% collateralized, allowing it to provide certificates of ownership of real fiat currency in a decentralized bank account. TrueUSD, the TrustToken company’s flagship product, has developed a legal framework in collaboration with Cooley and WilmerHale and a variety of compliance organizations that gives users of the platform legal protection over their assets, allowing for unprecedented transparency and reassurance that crypto investments are not only safe but stable and backed with genuine US dollars.
TrueUSD has built a large and growing network of fiduciary and banking partners that work to ensure that the TrueUSD tokens are backed 1:1 by US Dollars in a series of bank accounts.
Another aspect of the TrueUSD coin that is particularly noteworthy is the company’s commitment to regular and transparent auditing. By offering monthly audits of the TrueUSD assets, token-holders can have confidence as they can regularly monitor the actual status of the Funds backing their cryptocurrencies.
TrueUSD’s TrueUSD token is probably as close as any tech enthusiast can get to a cryptocurrency that is not only stable but allows users to manipulate the asset in almost any way imaginable. One of the benefits TrueUSD is bringing to crypto exchanges is the ability to price assets directly in US dollars, rather than having to price assets in Tether and attempt to understand how much money is actually backing the currency your target asset is priced in.
By offering a USD-priced platform, TrueUSD allows crypto funds and institutional traders the opportunity to hedge more volatile currencies like Bitcoin and Etherium with a trusted and stable crypto alternative.
In addition to the implications the TrueUSD token has for token holders, it also has a wide variety of advantages over other current cryptocurrencies as a means of general exchange. TrueUSD allows financial institutions to adopt cryptocurrencies into their business models easier than ever by presenting crypto as an asset they trust (US dollars) in the legal structure of trusts, which they are also familiar with.
Familiarizing these institutions with cryptocurrencies with allow them to more easily make and facilitate trades in crypto markets. For the general consumer, the TrueUSD token allows everyday people to enjoy the benefits of digital currencies like faster transaction speed and better privacy without sacrificing the stability of fiat currency.
As the Blockchain industry continues to grow and startups continue to introduce more waves of cryptocurrencies, it is important for traders and consumers alike to keep an eye on which platforms will offer the most trust and stability for their transactions. TrustToken is a Founders Fund and Stanford-StartX backed company that is looking to answer many of the problems currently associated with cryptocurrencies.
By backing their tokens with real fiat currency and offering unprecedented legal protection as well regular and transparent auditing of their assets, it will be hard to ignore TrueUSD as it proves itself a serious contender in the emerging world of stablecoins.