TrueUSD (TUSD) has carved out a greater niche in the stablecoin market, increasing its market share by over 238%. We dive deep in TUSD, its ecosystem, and future outlook.
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Overview of Stablecoin Sector
Total Stablecoin Supply
The stablecoin market reached a peak of around $180 billion in April 2022 but saw a marked decline due to a bearish outlook for the entire crypto industry. However, recent data indicates a reversal of this trend. Stablecoin supply is marching up again and new money seems to be coming into the crypto ecosystem. This change coincides with a significant recovery in the total cryptocurrency market capitalization, which has soared by 109% year-to-date.
Stablecoin Market Share
USDT increased its stablecoin market dominance, gaining market share from USDC. But most notably, TrueUSD (TUSD) has carved out a greater niche in the stablecoin market, increasing its market share by over 238% – from 0.53% to 1.79% year-to-date. TUSD's total market capitalization rose from $799.31 million to $2.31 billion within the same timeframe. TrueUSD's significant growth trajectory emphasizes its expanding position in the market.
Stablecoin Market Share
Stablecoin Trends
Within the stablecoin sector, TrueUSD has registered noticeable inflows, increasing its market presence. Meanwhile, USDT's dominance has intensified, backed by substantial US Treasury bill holdings, totaling $72.6B.
The entry of major financial players like PayPal with its PYUSD and Visa utilizing USDC for settlements indicates an embracing of stablecoins within mainstream finance. Tied to this is the rise of Real-World Assets (RWAs) within stablecoin strategies, signaling a growing integration of tokenized traditional assets with decentralized finance. This trend cements stablecoins as a crucial cornerstone for bridging the gap between conventional finance and the rapidly evolving DeFi ecosystem.
What is TrueUSD (TUSD)?
TrueUSD (TUSD) is a USD-pegged stablecoin that prides itself on live on-chain attestations of its reserves by independent, third-party accounting firms. Its most significant milestone was the integration into the Binance ecosystem, which has increased adoption of the stablecoin. Most notably, TUSD plays a facilitative role for traders looking to participate in token launches on the Binance Launchpad. Traders can invest in emerging cryptocurrencies with TUSD.
Furthermore, TUSD is now an approved collateral for margin trading. This allows traders to manage risk amidst market volatility on Binance Futures' Multi-Assets Mode. With 44 TUSD spot trading pairs and ample 24-hour trading volume, TUSD is becoming increasingly important in Binance’s trading operations.
Within the vibrant DeFi ecosystem of Binance, TUSD is compatible with decentralized trading hubs such as PancakeSwap and Ellipsis. Its adoption into these platforms illustrates TUSD's flexibility and capability to adapt to diverse transactional needs. Its live on-chain attestations of reserves and the proof of reserves mechanism via ChainLink enhance its credibility as a reliable and secure asset and bode well for further adoption of TUSD on Binance and other exchanges.
Key Metrics of TUSD
TrueUSD distinguishes itself in the stablecoin market through its significant circulating supply and consistent trading volume. It operates in an increasingly competitive environment dominated by large players like USDT and USDC but maintains a robust presence:
TUSD's circulating supply stands at over 3 billion at the time of writing. Although lower than USDT's and USDC's supplies, it's ranked 5th in the stablecoin sector.
With a 24-hour trading volume of over 200 million, TUSD shows active trading but trails behind the significant volumes seen with USDT and USDC. TUSD's leverage lies in its multi-chain availability, including Ethereum, TRON, and BNB Chain, which provides users with flexibility across various platforms and DeFi applications.
TUSD Reserves:
Real-time Attestations
In an effort to enhance the transparency and trustworthiness of stablecoins, TrueUSD has taken a significant step forward by integrating Chainlink's Proof of Reserve (PoR). This move positions TUSD as the first USD-backed stablecoin to incorporate a real-time and programmatically controlled minting system and ensures uninterrupted, on-chain verification of off-chain USD reserves.
The reserve data for TUSD is meticulously compiled by an independent, U.S.-based, industry-specialized accounting firm, The Network Firm LLP (TNF). This accounting entity is responsible for aggregating all reserve data specific to U.S. Dollars held in financial institutions and delivering the updated information in real-time.
Furthermore, on Dec. 25, 2023, TUSD announced an engagement with leading accounting firm Moore Hong Kong to provide daily attestation services and reports for its reserves starting in late January 2024. MooreHK is part of Moore Global, a renowned accounting and consulting firm with over 100 years of experience. The Network Firm, a specialized accounting and audit technology firm in the crypto industry, will collaborate with MooreHK to provide state-of-the-art technical support. This collaboration is part of TUSD's globalization initiative and commitment to transparency, setting a high standard for transparency in the stablecoin ecosystem.
With Chainlink PoR, TUSD's smart contract is designed to verify that the total supply of the stablecoin does not exceed the actual U.S. dollars held in reserve before any new token issuance occurs. This confirmation process is embedded in the smart contract's code, offering a transparent and independent approach to verifying TUSD’s asset backing.
TUSD’s enhanced transparent reserves reporting is accessible across 11 blockchain networks, including major ones like Ethereum and BNB Smart Chain and on over 70 cryptocurrency exchanges. Interested users and institutions can view the public results of TUSD's audits online.
TUSD Ecosystem
Exchanges
The TrueUSD ecosystem stands out with its significant trading volumes on key cryptocurrency exchanges, underscoring its growing adoption and the trust it has garnered among traders.
According to recent data, TrueUSD's 24-hour trading volume hovers between $100 million USD and up to over $2 billion USD on select trading days. This surge can be attributed to Binance's robust support of TUSD, when it introduced a zero-fee discount to trade BTC/TUSD pair. The robust standing of TUSD on exchanges is also reflected by its presence on HTX, OKX, Bybit and KuCoin. These platforms are home to a substantial share of the TUSD liquidity, catering to a varied demographic of traders who depend on its reputation for stability and the advantages of a USD-backed asset.
In terms of popular trading pairs, TUSD can be traded against all major cryptocurrencies. For instance, on Binance, the trading pairs of TUSD with Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Solana (SOL) and others generate trading volume in the millions.
The surge of TrueUSD is not just reflected in its volume but also in its utility across financial operations on exchanges. From standard trading to futures contracts and margin trading, TUSD features prominently across several trading applications.
Chains
TrueUSD (TUSD) takes a blockchain-agnostic approach. As of the latest report from October 2023, here is how TrueUSD is distributed across the blockchain networks:
TRON
Leading the pack with the highest number of TUSD tokens, TRON accommodates an impressive 2,610,951,828 TUSD, benefitting from fast transactions and low fees that are attractive for both users and developers.
Ethereum
Hosting a substantial portion of the TUSD supply, Ethereum supports 703,196,784 TUSD, making it a dominant chain for TrueUSD users who leverage its robust smart contract capabilities and vast ecosystem.
BNB Smart Chain
With Binance's sprawling ecosystem, the native BNB Smart Chain holds 30,130,364 TUSD, showcasing the appeal of Binance's internal market and DApp environment.
BNB Beacon Chain
Another component of the Binance ecosystem, the BNB Beacon Chain includes 145,016 TUSD in its roster.
Furthermore, TrueUSD trades on layer-one and layer-two chains like Avalanche, Fantom, Polygon, Arbitrum and Optimism.
DeFi
TrueUSD has also made strides in DeFi. On PancakeSwap, one of the most popular AMMs on the BNB Smart Chain, TUSD has been incorporated to enable users to trade directly with other stablecoins. The trading pair TUSD/USDT sees significant trading volume of over $5 million USD per day. Furthermore, TUSD is available on leading AMM decentralized exchange Curve Finance, with the crvUSD/TUSD trading pair seeing almost $1 million in 24 trading volume and $4.2 million in liquidity.
Partnerships
TrueUSD has also broadened its reach and utilization through strategic partnerships.
One of the standout collaborations is with IvendPay, a payment system that integrates cryptocurrencies into retail point of sale (POS) systems. It enables consumers to pay with digital assets in everyday transactions. This partnership signifies a remarkable step towards mainstream crypto adoption and showcases TrueUSD's commitment to utility and convenience. This alliance allows TUSD to be accepted at a wide range of vending machines and POS terminals serviced by IvendPay globally and makes TUSD exchangeable for real goods and services.
In addition, TrueUSD has partnered with Travala, a renowned travel service platform that brings utility to TUSD holders in the travel and tourism sector. This collaboration enables customers to book over two million hotels and accommodations worldwide with TrueUSD, especially leveraging the TRC-20 protocol for payments. It aligns with TrueUSD's mission to provide real-world applications for its stablecoin by facilitating seamless travel experiences paid with cryptocurrency.
Travala.com offers a streamlined approach to travel and vacation bookings, demonstrating the practical value of TUSD within the tourism industry. Additionally, UQUID, a prominent Web3 shopping platform, has integrated TUSD payments, providing users with access to a diverse array of products, including gift cards and clothing, totaling over 120 million items. Within the expansive Web3 freelancing landscape, HYVE, as the largest marketplace, has embraced TUSD as a versatile payment method, thereby enhancing its applicability in the job market. Moreover, the NOWPayments platform plays a crucial role by supporting physical merchants in incorporating TUSD as a preferred payment option, contributing to its widespread adoption in various commercial transactions.
Through these partnerships, TrueUSD demonstrates its active role in fostering the adoption of cryptocurrencies in everyday life. With IvendPay and Travala, TrueUSD customers have the advantage of using a stable and trusted digital currency for a range of transactions, from quick retail purchases to planning international travel, offering glimpses into the future of finance.
These partnerships evidence TrueUSD's efforts to cement its place for everyday use cases, indicating TUSD's potential for continued growth and integration into global commerce and lifestyle choices.
How To Mint and Redeem TUSD?
TrueUSD (TUSD) has streamlined the process for users to mint and redeem their stablecoin directly through their proprietary web application.
Here we detail the simple steps required to mint new TUSD or redeem them for fiat currency.
How To Mint TUSD
- Create an Account: Begin by creating an account on app.tusd.io. You will need to submit the required KYC (Know Your Customer) information and await verification.
- Initiate a Wire Transfer: Once verified, initiate a wire transfer of USD to the TrueUSD bank account. This will be held in escrow by a trusted third-party escrow service.
- Mint TUSD: Following the confirmation of your USD wire transfer, an equivalent amount of TUSD will be minted on a 1:1 basis and will be sent to your cryptocurrency wallet tied to the platform.
How To Redeem TUSD
- Access Your Account: Log into your account on app.tusd.io and choose the option to redeem your TUSD.
- Send TUSD to the Redemption Address: You will be provided with a unique redemption wallet address. Transfer your TUSD from your wallet to this address.
- Receive USD: After TrueUSD verifies the TUSD tokens, the equivalent amount of USD minus any applicable fees will be wired to your bank account, effectively redeeming your TUSD for fiat currency.
For a closer look at each step, including the finer details and required information for transactions, reference the full guide.
Future Roadmap and Outlook for TUSD
The stablecoin sector is bracing for an innovative phase marked by heightened scrutiny, regulation, and integration into traditional finance. With global discussions around Central Bank Digital Currencies (CBDCs) gaining momentum, the role of stablecoins like TUSD will likely become more defined. As the industry matures, enhanced transparency and reserve verification methods will likely become the norm, building greater trust among users and regulators alike. TUSD is already well-positioned in those regards. With its live attestations and Chainlink's Proof of Reserve (PoR), it not only meets but exceeds the growing demand for true asset-backing verification in the stablecoin market.
