TrueUSD Audit Shows Full US Dollar Backing
An audit of TrueUSD funds showed that it has the entirety of U.S. dollar backing for its coins. TrustToken has released the outcomes of an audit of its stable coin TrueUSD (TUSD) in a blog post on April 8. The audit reveals that it has the full amount and some to spare of United States dollar reserves.
Per the Independent Accountants’ Report prepared by licensed public accounting firm Cohen & Company, as of March 31, 2019, the U.S. dollar balance held in escrow accounts was $199,063,885, while the balance of TUSD tokens provided and being in flow was 198,982,291 TUSD.
The provided and outstanding TUSD tokens since the date supposedly do not go beyond the balance of the above-mentioned escrow accounts. “The supply of TUSD tokens can be reconciled to transactions within the escrow accounts consisting of escrow deposits waiting for token minting and tokens which have been burned and are awaiting escrow disbursement,” the report further discusses.
Last month, TrueUSD announced a new partnership with accounting company Armanino, in which a dashboard developed by Armanino supposedly allows traders to keep track of TrueUSD token balances and collateralized funds. “Armanino links directly to third-party escrow accounts holding the U.S. dollars that collateralize TrueUSD tokens, and runs their own Ethereum nodes to guarantee precise TUSD token supply,” the announcement detailed.
Some stablecoins, cryptocurrencies secured to fiat currencies, algorithms, or physical assets in a proposal to minimize volatility, have actually formerly been suspected of not having the appropriate reserves to back them. In March, designers behind stablecoin Tether (USDT) drew analysis after social media users discovered they had gotten rid of previous claims that the altcoin was totally backed by U.S. dollars.
A new update accentuated that “every Tether is constantly 100% backed by our reserves, that include traditional currency and cash equivalents and, from time to time, may consist of other assets and receivables from loans made by Tether to 3rd parties, which might consist of affiliated entities.” That led some community members to take issue with backing by anything aside from U.S. dollars, which they suggested compromises the entire coin’s authenticity.