TrueCoin aims to release a Tether alternative called the TrueUSD. Find out how it works today in our review.
What is TrueCoin TrueUSD?
TrueCoin, found online at TrueCoin.com, aims to create a USD-backed stablecoin called the TrueUSD. That digital token works in a similar way to Tether and its USDT: it promises to offer stable value backed 100% by real USD stored in a bank vault.
Tether, of course, has faced criticism in recent months due to its lack of transparency. The company has been accused of not letting auditors verify its cash reserves. All USDT are supposed to be backed by $1 USD in a real, liquid reserve. However, it’s not clear if that’s totally the case.
TrueCoin wants to create a USD-backed cryptocurrency with better transparency. It’s a USD-backed stablecoin you can exchange and trust.
With that in mind, let’s take a closer look at how TrueCoin works.
How Does TrueCoin Work?
TrueCoin is 100% collateralized by USD in legally protected custodial accounts. Those accounts are held with multiple bank partners, letting you trade, send, and receive payments with better peace of mind.
TrueCoin also has a unique legal framework that allows users to exchange USD directly with a custodial account – so TrueCoin never touches the funds. Plus, publicly-audited smart contracts ensure a 1:1 parity between TrueCoin and USD in the accounts. The end result is a simple stablecoin without the need to trust some company’s hidden bank account or special algorithm.
Custodial accounts were used because they’re one of the most common legal contracts for asset management. Custodial accounts also enable daily auditing and complete legal protection for token holders.
The company will initially only launch the TrueUSD. However, in the future, they plan to launch the TrueMuni, TrueYen, and other currencies. All of these currencies can be listed on exchanges around the world and traded globally.
TrueCoin emphasizes the following three core features:
Stable Currency: TrueCoin’s value is backed by the USD, making it a stable currency that any cryptocurrency exchange can use.
Legal Protection: Anyone who passes a standard KYC/AML check is legally entitled to redeem TrueCoin for USD.
1:1 Parity: All TrueUSD coins are always 100% collateralized by USD, held in professional trust firms’ banks.
Transparent: TrueCoin’s bank account holdings are published daily and subject to monthly professional audits.
Bank Grade Security: TrueCoin will regularly undergo independent third party evaluations by leading auditors to ensure best possible security practices.
Direct Banking: Users don’t have to interact with TrueCoin when they want to exchange their money for USD. Instead, they can transact directly with the firm’s bank, and TrueCoin never touches the funds.
Who Should Use TrueCoin?
TrueCoin can be used by all of the following organizations and individuals:
Financial Services: Financial firms can enter crypto markets without getting immediate exposure to BTC or ETH. These companies receive receipts and proof of ownership for their TrueUSD tokens.
Exchanges: Exchanges can offer customers a stablecoin they can trust. TrueUSD can be used as an alternative to traditional currency deposit methods.
Crypto Traders: Crypto traders can hedge against volatility in the crypto market, moving money into crypto without immediate exposure to ETH or BTC.
Commerce Platforms: Online purchases, salaries, escrow, and loans are enabled through price stability, allowing the mainstream adoption of digital currencies.
How to Use TrueCoin
TrueCoin works with multiple trust companies that already manage billions of dollars. Here’s the basic process you use to begin working with TrueCoin:
- You pass a KYC/AML check
- You send USD to a trust company with a custodial agreement
- When the trust company verifies your funds, their API instructs the TrueCoin smart contracts to issue the equivalent TrueUSD to your public Ethereum address
- To withdraw USD, you need to pass a KYC/AML check, send the smart contract your TrueUSD tokens from a registered Ethereum address, then the custodial bank will send you funds
Through this system, TrueCoin doesn’t touch funds. The trust companies do all of the deposit and receipt of your money through custodial accounts.
Who’s Behind TrueCoin?
TrueCoin was co-founded by Rafael Cosman, Stephen Kade, and Danny An. The company is based in the San Francisco Bay area. It was founded in September 2017, and appears to have been originally named TrustToken.
TrueCoin lists a number of major partners on its official website, including Stanford University’s Stanford StartX Fund, G&TCA, Law Offices of Oshins & Associates, LLC, Cooley, WilmerHale, Alliance Trust Company of Nevada, Wealth Advisors Trust Company, and others.
TrueCoin TrueUSD Conclusion
TrueCoin is a stablecoin that aims to offer a more transparent alternative to Tether and its USDT digital token. Today, many exchanges use Tethers as a way for users to exchange cryptocurrencies into stable fiat currencies. However, Tether has faced criticism for its alleged lack of audits.
TrueCoin, on the other hand, will adopt a completely different model, allowing users to view daily and monthly audits from outside professionals. Users – like exchanges – will also be able to exchange their TrueUSD 1:1 by interacting directly with TrueCoin’s affiliated trust companies, which means TrueCoin never actually handles your money during the withdrawal.
To learn more about TrueCoin and how it works, visit online today at TrueCoin.com.