New Stablecoin Launches By TrustToken, Pegged To Australian Dollar (AUD), Dubbed TrueAUD
New Stablecoin Launched By TrustToken, Pegged To AUD
In a market that is filled with volatility, many institutional investors are becoming more comfortable with cryptocurrency through the use of stablecoins. Stablecoins are linked directly to an asset, like fiat currency or even gold, ensuring that they maintain the same value over time. Though Tether has long reigned over the stablecoin world, other companies are getting involved to tie stablecoins in with other assets. In a new announcement by TrustToken, reported by CoinDesk, the platform is unrolling new stablecoins, starting with one tied to AUD.
The announcement was made on Wednesday, explaining that the new TrueAUD token is available now, pegged at a 1:1 ratio to the Australian dollar. The asset is already prepared to be listed on any exchange, and users are able to purchase and apply the stablecoin through the corresponding app.
The TrueAUD token is fairly similar to the TrueUSD token, according to the technical and legal standards. The firm stated that they’ll be holding the funds to back the stablecoin in an escrow account, held by a third party. They also plan to use Cohen & Co. to provide consistent attestations that prove the backing by AUD, ensuring that the stablecoin is not plagued with the same rumors and drama that Tether has seen.
Tether has had difficulties with providing transparency, going as far as to hold back from allowing a full audit to prove the USD backing that it has. Last month, to ensure that traders can see a “real-time” view of the company’s reserves, TrustToken established a partnership with Armanino, which is an accounting firm. Tether ultimately admitted to the public last month that the collateral backing held for the USDT token may not be entirely in USD, but in other assets as well.
Earlier in April, TrustToken launched TrueGBP, which is a stablecoin pegged directly to the British pound, adding to the TrustUSD that they launched last year. When the tokens were launched, TrustToken said that they will be launching other stablecoin products as well, like one linked to the yen. The firm has also expressed that they will be launching stablecoins in Canadian dollars (TrueCAD) and in Hong Kong dollars (TrueHKD) sometime in the second quarter of the year. By the third quarter, a Euro-based stablecoin is due to be launched called the TrueEuro.
TrustToken is already backed by A16z Crypto, which is a crypto fund by Andreessen Horowitz that raised $20 million in funding for the firm in the form of a token sale last year. Ultimately, the firm aims to be the “bridge between blockchains and $256 trillion worth of real-world assets.”