TrustToken, the organization behind the TrueUSD (TUSD) stablecoin, has recently published a blog post revealing a third-party audit to its reserves shows it has a US dollar in its reserves to back every TUSD in circulation.
According to the Independent Accountants’ Report, created by certified accounting firm Cohen & Company, as of March 31 of this year TrustToken has a US dollar balance of $199,063,885 in its accounts, a figure above the 198,982,291 TUSD tokens in circulation.
The report reads:
The supply of TUSD tokens can be reconciled to transactions within the escrow accounts including escrow deposits awaiting token minting and tokens which have been burned and are awaiting escrow disbursement.
It comes shortly after TrueUSD announced a partnership with accounting firm Armanino, which is set to allow traders to monitor the stablecoin’s balances and collateralized funds through a dashboard.
It also comes after Tether, the firm behind the USDT token – the most popular stablecoin in the market – quietly diluted its USD reserves claims. The company changed the wording on its website so it still claims every USDT token is backed by its reserves, although they won’t all be in US dollars.
Tether’s website now reads:
Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”). Every tether is also 1-to-1 pegged to the dollar, so 1 USD₮ is always valued by Tether at 1 USD.
This drew criticism from the cryptocurrency community, as some believe the stablecoin doesn’t have the funds to back its over 2 billion tokens in circulation. Both Tether and Bitfinex -which share management – are reportedly being investigated by the US Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC).
Back in October Bitfinex halted fiat deposits for “certain customers in face of processing complications,” which led to a significant Bitcoin-Tether premium. Despite the doubts, USDT has been the dominating the stablecoin sector, despite the growing influence of competitors like the USDC, PAX, and TUSD.
