Binance Will List Trading Pairs For TrueUSD
Binance announced that it will support a few TrueUSD (TUSD) trading pairs on Friday, May 18th, at 4:00 am (UTC). The USD-pegged stablecoin will only be exchanged with Bitcoin (BTC), Ethereum (ETH), and the platform’s native Binance Coin (BNB).
TUSD- a Regulatory Compliant USDT
TUSD is a stablecoin which is created to be the equivalent of the US dollar at a one-to-one ratio, meaning that its value will be around one USD.
“In the TrueUSD system, U.S Dollars are held in the bank accounts of multiple trust companies that have signed escrow agreements, rather than in a bank account controlled by a single company. The contents of said bank accounts are published every day and are subject to monthly audits,” explained Binance.
Because of this, acquiring TrueUSD through other means except trading on Binance can’t be done as easily as one might expect.
“If someone wants to obtain TrueUSD through the online application, they will need to pass a KYC/AML check. Once that’s complete, they can send USD to one of TrueUSD’s trust company partners. Once the funds are verified by the trust company, their API will instruct the TrueUSD smart contract to issue tokens on a 1 to 1 ratio and to send them to the Ethereum address associated with the account at hand,” noted Binance.
However, once you purchase and store TrueUSD, owners can send it to other users, use it as payment, tether their cryptocurrency assets to it when market prices fluctuate, etc. If your wallet has been verified by one of TrueUSD’s trust company partners, TrueUSD owners may have the possibility of converting the virtual currency into actual US dollars.
“The user can also redeem real US Dollars by sending the TUSD tokens back to the smart contract address, which will notify the trust company, and initiate a bank transfer to the user’s account,” explains Binance.
At the time when the article was written, TrueUSD was valued at $1.02 per token.
Goldman’s Own Stablecoin
Binance’s announcement comes right after Circle, the Goldman Sachs-backed startup, made a similar announcement in which it described its plans to launch its own cryptocurrency tethered to the U.S. dollar, succeeding a very productive investment round dominated by cryptocurrency mining company Bitmain.
However, Circle’s stablecoin targets institutional investors rather than domestic traders, as the company’s clients must hold $1 for every USD-backed coin.
“When I look at the convergence of traditional finance and the crypto space, it’s begging for that. There are a number of banks who are excited about it and will support it,” explains Jeremy Allaire, the CEO of Circle.