An Overview of the Stablecoin TrueUSD (TUSD)
TrueUSD (TUSD) has carved out a place in the stablecoin market, with its market share growing by over 238%.Source: CMC Research
Overview of the Stablecoin Industry
Total Supply of Stablecoins
In April 2022, the total market capitalization of stablecoins surged to around $18 billion, but subsequently fell sharply due to overall pessimism in the industry. Recent data indicates that this trend is reversing. The supply of stablecoins is rising again, with new funds continuously flowing into the cryptocurrency ecosystem. This change aligns with the significant rebound in the total market capitalization of the industry—so far this year, the total market capitalization of cryptocurrencies has soared by 109%.
Source: https://www.theblock.co/data/stablecoins/usd-pegged/total-stablecoin-supply
Market Share of Stablecoins
USDT has gained some market share from USDC, leading to an overall increase in its market share. Notably, the market share of TrueUSD (TUSD) has significantly increased, rising from 0.53% at the beginning of the year to 1.79% now, an increase of over 238%. During the same period, the total market capitalization of TUSD grew from $799.31 million to $2.31 billion. This remarkable growth highlights its increasingly prominent position in the market.
Market Share of Stablecoins
Trends in Stablecoins
In the stablecoin sector, TrueUSD has observed a substantial inflow of funds, which has also helped increase its market share. Meanwhile, thanks to an investment in U.S. Treasury bonds valued at approximately $72.6 billion, USDT's market dominance has been further strengthened.
As mainstream financial giants take a series of actions, such as PayPal launching PYUSD and Visa adopting USDC for payment settlements, the acceptance of stablecoins in mainstream finance is increasing. The rise of Real World Assets (RWA) also indicates a growing integration between traditional asset tokenization and decentralized finance. This trend solidifies the position of stablecoins in the industry: as a key cornerstone, stablecoins can bridge the gap between traditional finance and the rapidly evolving DeFi ecosystem.
What is TrueUSD (TUSD)?
TrueUSD (TUSD) is a dollar-pegged stablecoin that provides on-chain real-time verification from independent third-party auditing firms. Its most significant milestone is the integration with the Binance ecosystem, which has helped promote the widespread adoption of TUSD. Notably, TUSD offers a convenient investment channel for users wishing to participate in Binance Launchpad projects: traders can directly use TUSD to invest in newly launched projects.
Additionally, TUSD has been approved as collateral for leveraged trading, allowing traders to hedge market volatility risks through Binance's multi-asset contract model. TUSD is now listed on Binance with 13 spot trading pairs, and its 24-hour trading volume remains high, underscoring its increasingly important role in Binance's trading operations.
Leveraging Binance's thriving DeFi ecosystem, TUSD has achieved compatibility with decentralized trading platforms like PancakeSwap and Ellipsis. This indicates that TUSD possesses sufficient flexibility and functionality to adapt to diverse trading needs. Furthermore, the real-time on-chain reserve verification and ChainLink reserve proof mechanism employed by TUSD enhance its credibility as a secure and reliable asset, suggesting that TUSD will see broader applications on trading platforms like Binance.
Core Data of TUSD
TUSD occupies a place in the stablecoin market due to its large token circulation and robust trading volume. Despite the increasingly competitive market environment with giants like USDT and USDC, TUSD maintains a strong data advantage:
As of the date of writing, TUSD's circulation has exceeded $3 billion. Although this figure is still lower than the supply of USDT and USDC, it is significantly higher than DAI and comparable to BUSD, reflecting TUSD's overall wide usage and high investor confidence.
The TUSD trading market is very active, with a 24-hour trading volume exceeding $200 million, although it lags behind the massive trading volumes of USDT and USDC. TUSD's advantage lies in its support for multi-chain applications on Ethereum, TRON, BNB Chain, and others, allowing users to easily use the token across platforms and DeFi applications.
TUSD Reserves: Real-Time Verification
To further enhance the transparency and credibility of the stablecoin, TUSD has adopted the Chainlink Proof of Reserves (PoR) mechanism. As a result, it has become the first dollar-collateralized stablecoin to achieve real-time program-controlled minting, ensuring continuous on-chain verification of off-chain dollar reserves.
TUSD's reserve data is compiled by The Network Firm LLP (TNF), an independent accounting firm specializing in digital asset audits in the U.S. This firm is responsible for consolidating the dollar reserve data held by various financial institutions for TUSD and updating the information in real-time.
Additionally, on December 25, 2023, TUSD announced a partnership with leading accounting firm Moore Hong Kong (MooreHK), which will provide daily attestation services and reserve proof reports for TUSD starting at the end of January 2024. MooreHK is part of Moore Global, a well-known accounting and consulting firm with over a century of experience. The Network Firm is a technology company that provides accounting and auditing services specifically for the cryptocurrency industry and will collaborate with MooreHK to provide TUSD with state-of-the-art technical support. This partnership will advance TUSD's globalization initiatives and fulfill its commitment to increasing transparency, setting a benchmark for transparency in the stablecoin ecosystem.
The Chainlink PoR mechanism assists TUSD's smart contracts in verifying its total supply before token issuance, ensuring that the supply does not exceed the actual dollar amount held in reserves. This process is encoded in the smart contract, providing a transparent and independent verification method for TUSD's asset reserves.
Currently, TUSD's more transparent reserve reports can be viewed on 11 blockchain networks, including mainstream blockchains like Ethereum and BNB Smart Chain, as well as over 70 cryptocurrency exchanges. Interested users and institutions can view TUSD's public audit results online.
TUSD Ecosystem
Exchanges
The TUSD ecosystem has performed remarkably well in trading volumes across major cryptocurrency exchanges, indicating that TUSD is becoming increasingly popular and gaining the trust of traders.
Recent data shows that TUSD's 24-hour trading volume on selected trading days ranged between $100 million and $2 billion. This growth is primarily attributed to Binance's launch of zero-fee trading activities for BTC/TUSD, providing strong support for TUSD. TUSD is also listed on HTX, OKX, ByBit, and KuCoin, further confirming its solid position in the cryptocurrency exchange market. The liquidity of TUSD on these exchange platforms is high, with a diverse range of trading users who are optimistic about TUSD's stability and dollar-collateral advantages.
In terms of mainstream trading pairs, TUSD can be traded with all popular cryptocurrencies. For example, on Binance, TUSD's trading volume with Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Solana (SOL), and others has reached millions.
In addition to the surge in trading volume, TUSD has also seen broader usage in financial services across major exchanges, occupying a significant position in various trading categories such as regular trading, futures contracts, and leveraged trading.
Blockchain
TUSD supports multiple blockchains. The following is the latest report from October 2023 showing the distribution of TUSD across different chains:
TRON
Due to its fast transaction speeds and low fees, TRON has successfully attracted a large number of users and developers, with TUSD circulation on the TRON chain reaching 2,610,951,828 tokens, ranking first among all public chains.
Ethereum
The supply of TUSD on Ethereum is 703,196,784 tokens, which constitutes a significant proportion of the total supply. Additionally, Ethereum's strong smart contract capabilities and large ecosystem make it a favored choice for many TUSD users.
BNB Smart Chain
As the Binance ecosystem continues to expand, the number of TUSD tokens on the BNB Smart Chain has reached 30,130,364 tokens, reflecting the strong appeal of the internal market and DApp ecosystem of Binance.
BNB Beacon Chain
The BNB Beacon Chain is also a major component of the Binance ecosystem, with TUSD circulation on-chain amounting to 145,016 tokens.
Furthermore, TUSD can also be traded on first-layer and second-layer blockchains such as Avalanche, Fantom, Polygon, Arbitrum, and Optimism.
DeFi
TUSD has also made significant progress in the DeFi space. A popular automated market maker (AMM) on the BNB Smart Chain, PancakeSwap, now supports users to trade TUSD directly with other stablecoins. The daily trading volume of the TUSD/USDT trading pair has exceeded $5 million. Additionally, TUSD has been listed on the leading AMM decentralized exchange Curve Finance, where the crvUSD/TUSD trading pair has a 24-hour trading volume close to $1 million, with liquidity reaching $4.2 million.
Partnerships
TUSD has expanded its influence and usage through strategic partnerships.
The collaboration between TUSD and IvendPay is particularly noteworthy. The IvendPay payment system integrates cryptocurrencies into retail POS systems, allowing consumers to use digital assets for everyday transactions. This partnership promotes the adoption of cryptocurrencies in mainstream markets and demonstrates TUSD's strong commitment to practicality and convenience. Various vending machines and POS terminals serviced by IvendPay globally support TUSD, enabling users to purchase real goods and services with TUSD.
TUSD has also partnered with the well-known travel service platform Travala to provide travel conveniences for TUSD holders: users can use TRC20-TUSD to book accommodations at over two million hotels and lodgings worldwide. This aligns perfectly with TUSD's mission to offer users a crypto-friendly travel experience, enriching the real-world application scenarios of this stablecoin.
These partnerships vividly illustrate TUSD's active role in promoting the everyday use of cryptocurrencies. After collaborating with IvendPay and Travala, TUSD can be used for various transactions such as retail shopping and international travel planning, providing users with a stable and reliable option while showcasing the future prospects of the financial industry.
By promoting the aforementioned collaborations, TUSD continuously enhances its visibility in daily life. This clearly indicates its potential to integrate into global business activities and daily life while maintaining sustainable development.
How to Mint or Redeem TUSD?
Users can mint and redeem TUSD directly through a dedicated web application, with simple and easy-to-follow operations.
Minting and redeeming TUSD only requires the following steps:
Minting TUSD
- Create an Account: Go to app.tusd.io to create an account, submit KYC verification information, and wait for verification.
- Make a Wire Transfer: After successful verification, please wire dollars to the bank account provided by TUSD, and your funds will be held in trust by a trusted third party.
- Mint TUSD: Once the wire transfer is confirmed, the platform will mint the corresponding amount of TUSD at a 1:1 ratio and transfer it to your associated cryptocurrency wallet.
Redeeming TUSD
- Log into Your Account: Go to app.tusd.io, log into your account, and select to redeem TUSD.
- Send TUSD to the Redemption Address: The platform will send you a unique redemption wallet address; please transfer TUSD to that address.
- Receive Dollars: After the platform completes token verification, the dollar amount (minus fees) will be transferred to your bank account, redeeming TUSD for fiat currency.
For more details on each step and the information required for transactions, please refer to the detailed guide.
Future Outlook for TUSD
The stablecoin sector is about to enter a new phase characterized by increased regulation, tighter policies, and deeper integration with traditional finance. Global discussions surrounding Central Bank Digital Currencies (CBDCs) are becoming more in-depth, and the positioning of stablecoins like TUSD will become clearer. As the stablecoin industry matures, there may be a general upgrade of reserve proof solutions and an increase in transparency, thereby gaining the trust of more users and regulatory bodies. TUSD has already performed quite well in these areas. By adopting real-time verification and Chainlink's PoR mechanism, TUSD can exceed the growing demand for real asset reserve verification in the stablecoin market.
