ChainCatcher Space Review: A Conversation with Yvonne Chia, Head of TrueUSD Communications, Discussing the Future Trends of Stablecoins

Interviewer: ChainCatcher

Guest: Yvonne Chia, Head of Communications at TrueUSD

Since the beginning of 2024, the market capitalization of stablecoins has increased by over $30 billion, rising from $130 billion at the start of the year to over $160 billion. As of June 7, the total market capitalization of stablecoins has exceeded $161.1 billion.

The rapid growth in the market capitalization of stablecoins indicates that their acceptance in mainstream finance is increasing, along with rising demand and popularity.

In April of this year, the rating agency S&P stated that if the stablecoin bill recently proposed in the U.S. Senate is passed, it could encourage traditional financial institutions such as banks to enter the stablecoin market, bringing new opportunities for the development of stablecoins.

Stablecoins in the crypto world are gradually being adopted by the mainstream world, and with the introduction of regulatory policies, they will enter a new phase of deeper integration with traditional finance.

TUSD (TrueUSD) has emerged as the fastest-growing dark horse in the stablecoin sector in 2023, demonstrating excellent performance in asset management scale, stablecoin circulation, industry popularity, application scenarios, and technological development. Especially in terms of fund security and transparency, TUSD has partnered with independent third-party auditing firms, which provide daily reserve asset audit reports for TUSD, setting a benchmark in the industry.

In the ChainCatcher-hosted online Space live event focused on stablecoins, Yvonne Chia, Head of Communications at TUSD, stated that to ensure the safety of user assets at all times, TUSD's reserve assets are verified on-chain in real-time by independent third-party institutions, and relevant information about TUSD's dollar reserve assets is made publicly available for users to view at any time.

In terms of application scenarios, TUSD has been exploring usability beyond investment functions. Currently, TUSD has been listed on major exchanges and DeFi platforms, ensuring that global investors can use it, and it is compatible with existing payment infrastructures, achieving full integration with digital wallets and payment platforms, allowing users worldwide to easily access and use TUSD in their daily financial activities, thus expanding its practical application scenarios.

Below is the text content from ChainCatcher Space:

ChainCatcher: Today, we are very honored to have Yvonne Chia, Head of Communications at TUSD, with us. Yvonne, could you please greet our audience and introduce your work and responsibilities at TUSD?

Yvonne Chia: Hello everyone, I am Yvonne Chia, Head of Communications at TUSD. I am responsible for the external communication of the brand, enhancing TUSD's brand influence and thought leadership on social media platforms. In this rapidly changing cryptocurrency industry, we hope to provide reliable insights and perspectives for community members, promote industry discussions, and help the public gain a deeper understanding of stablecoins. I look forward to sparking different ideas today!

ChainCatcher: What are the characteristics of TUSD?

Yvonne Chia: One of TUSD's unique advantages is its ability to ensure the safety of user assets at all times. TUSD is verified on-chain in real-time by independent third-party institutions. We are the first dollar stablecoin to adopt this verification method, and the third-party auditing firm we work with issues verification reports daily, publicly disclosing information about TUSD's dollar reserve assets. Users can log onto our official website to view these reports.

In my opinion, this verification method is not only an important milestone in TUSD's development but also has profound significance for the entire industry, as it defines a new standard of safety in the cryptocurrency space. Because TUSD's reserve assets are verified daily by independent institutions, users have greater trust in us.

ChainCatcher: How does TUSD differ from popular stablecoins in the market such as USDT, USDC, DAI, USDe (Ethena), and FDUSD?

Yvonne Chia: There are many ways to classify stablecoins, such as by the type of reserves, whether they are fully collateralized, or whether they are decentralized custodians.

According to the traditional classification of stablecoins, namely fiat-collateralized stablecoins, over-collateralized stablecoins, and algorithmic stablecoins, TUSD is similar to USDT/USDC/FDUSD, as it belongs to the fiat-collateralized stablecoin category. The characteristic of this type of stablecoin is that the reserves are mainly fiat currencies (primarily the U.S. dollar) and are generally fully collateralized.

TUSD is a leader among this type of stablecoin, as mentioned earlier. TUSD not only collaborates with well-known accounting firms, which provide industry-leading technical support for verifying TUSD's reserves, but also enhances the transparency and verifiability of our stablecoin by using Chainlink's industry-leading decentralized oracle network to put information on-chain, ensuring that TUSD is always backed by sufficient off-chain fiat reserves.

According to the aforementioned classification, DAI is classified as an over-collateralized stablecoin, with its collateral primarily consisting of ETH and USDC. Because the price of ETH can fluctuate significantly with market conditions, DAI uses over-collateralization to manage market risks. USDe is somewhat unique, as it is a synthetic interest-bearing stablecoin, allowing users to deposit their ETH or liquid-staked ETH (such as stETH) to mint USDe for earning yields, which I won't elaborate on here. Users can choose the corresponding stablecoin based on their needs and usage scenarios.

ChainCatcher: The total market capitalization of stablecoins has increased by over $30 billion in the past five months. What trends do you expect for the stablecoin market in the future?

Yvonne Chia: The rapid growth in the market capitalization of stablecoins over the past few months indicates a significant increase in demand and popularity for stablecoins in the digital finance sector, and users have gained stronger confidence in the practicality and stability of stablecoins. This is undoubtedly a positive signal, reflecting that stablecoins are becoming an increasingly mainstream digital asset, being applied in various financial activities.

Stablecoins, as a reliable means of value storage and transaction medium, are coming into the view of more and more people, showing great potential to reshape and optimize the traditional financial industry in the digital age. TUSD places a high emphasis on security and transparency, which can greatly promote the development of this trend. As a trustworthy stablecoin product, we are confident in addressing users' pain points and becoming their new choice for daily transactions.

ChainCatcher: With the stablecoin sector becoming increasingly crowded and the passage of related bills, does this indicate that the public is widely adopting stablecoins?

Yvonne Chia: Indeed, the stablecoin sector is becoming more crowded, and regulatory attention is also increasing. Stablecoins are not yet widely used by the public, but they are definitely moving in that direction. These types of crypto assets are continuously attracting public attention and playing an increasingly prominent role in the cryptocurrency ecosystem.

Stablecoins are also gradually penetrating the traditional financial sector, indicating that their level of popularity is deepening. More and more traditional financial institutions are entering the DeFi space. According to recent news reports, many international banks, including Mastercard and PayPal, have begun to lay out plans in the cryptocurrency field. As stablecoins continue to integrate with various financial services, they will better facilitate daily transactions and cross-border payments, bridging the gap between fiat and digital currencies.

ChainCatcher: With USDT holding over 69% market share, do newly emerging stablecoins still have opportunities?

Yvonne Chia: USDT currently does dominate a large portion of the market share, but there is still considerable growth potential for other stablecoins. Different stablecoins have different use cases, and the target users are in different regions, which provides unique development opportunities for various stablecoins.

For example, stablecoins like USDE may be more suitable for investment and earning yields, while tokens like DAI may be more appealing to users seeking high decentralization.

We hope TUSD can participate in the global new payment system, so we mainly focus on the accessibility and usability of TUSD. TUSD has now been listed on major leading exchanges and DeFi platforms, ensuring that global investors can use it. Additionally, TUSD is compatible with existing payment infrastructures, achieving full integration with digital wallets and payment platforms, allowing users around the world to easily use TUSD in their daily financial activities.

ChainCatcher: How is the current state of TUSD's ecosystem construction? What are the application scenarios?

Yvonne Chia: The TUSD ecosystem is currently thriving, giving rise to various applications and use cases. TUSD has already been listed on over 80 cryptocurrency exchanges and DeFi protocols, including Binance, Bitget, HTX, Poloniex, and KuCoin, and has been natively deployed on well-known networks such as Ethereum, Tron, Avalanche, and BSC, leveraging the robust infrastructure of these platforms to achieve smooth trading and interaction experiences.

In various real-world use cases, TUSD is also highly trusted. We have partnered with institutions such as NOWPayments, ChangeNOW, ivendPay, Travala, UQUID, HYVE, B2BinPay, and Crypto.com to complete payment integrations, making it convenient for users to use TUSD in their daily transactions.

At the same time, we are also advancing partnerships with leading exchanges and enterprises around the world to expand the use and application of TUSD, continuously growing the TUSD ecosystem and covering more industries and use cases.

ChainCatcher: According to DeFiLlama data, as of May 31, the total market capitalization of stablecoins has reached $160.863 billion, having increased by $30 billion since the beginning of the year. Among them, USDT has a market capitalization of $111.5 billion, holding over 69% market share. In addition to the pressure from the dominant USDT, there is also the rise of the new stablecoin USDe. How does TUSD view competition, and how will it improve its market share?

Yvonne Chia: We can view competition from both positive and negative perspectives; the increasingly fierce competition has both advantages and disadvantages.

From a macro perspective, the rise in stablecoin market capitalization and the emergence of competitors will promote further adoption of stablecoins. This is certainly a good thing, indicating that stablecoins are becoming increasingly prominent in the digital finance sector.

However, we must also remain vigilant, as maintaining our position and expanding market share in the face of competition requires continuous innovation and improvement. We will maintain our commitment to transparency and security, as users who choose to use cryptocurrencies for value storage rather than speculative trading will place a high emphasis on these two aspects as stablecoins enter the mainstream view.

ChainCatcher: What are the future development priorities for TUSD? What are the plans for ecosystem construction?

Yvonne Chia: One of the key focuses for TUSD's future development is expansion. Since 2018, we have been collaborating with top exchanges globally, hoping to allow more users to access TUSD.

For example, we recently established partnerships with several leading companies in the digital finance sector, including Bitci, a leading cryptocurrency exchange in Turkey, and ReHold, a multi-chain DeFi aggregation protocol. These partnerships enable TUSD to reach more regions globally and connect with more users with different needs.

Through continuous expansion, we hope to achieve sustained growth in TUSD's scale and user adoption in the coming years.

ChainCatcher: What is your outlook for the future development of the stablecoin industry?

Yvonne Chia: We hope to see cryptocurrencies gradually adopted by the mainstream world. There are now signs that the cryptocurrency ecosystem is about to undergo changes, with cryptocurrencies evolving from speculative financial tools to everyday transaction mediums. Stablecoins, including TUSD, will play an important role in this process.

As a trusted stablecoin, we look forward to TUSD being integrated into more users' daily transactions and financial activities. Overall, we believe the future of cryptocurrencies is promising, and we hope to witness the industry's future development.