Topic: New categories of stablecoins are emerging constantly. How will the veteran player TrueUSD respond?
Hello, I am Yvonne Chia, Head of Communication at TUSD. I oversee communications for TUSD, including our presence on social media platforms, with a particular focus on thought leadership. With the proliferation of information in the crypto space, we understand the significance of providing trusted insights to our community, contributing to discussions in the industry, and fostering a deeper understanding of stablecoins in the public. I’m looking forward to our conversation today!
1. What are the features of TUSD?
One distinguishing feature of TUSD is our commitment to ensuring that users’ assets are secure at all times. TUSD has live on-chain attestations carried out by an independent third-party institution. We were the first USD-pegged stablecoin to implement this practice. Every day, audit firms produce a daily attestation report which contains verified information about TUSD’s USD reserves. These reports are available for viewing and downloading on TUSD’s website.
In my opinion, this is a significant milestone not just for TUSD but for the entire crypto sector, because this set a new benchmark for what ‘security’ entails in the cryptocurrency world. TUSD ensures that the integrity of its reserves is verified independently every day, providing users with confidence in its dependability.
2. What differentiates TUSD from other popular stablecoins such as USDT, USDC, DAI, USDe (Ethena), and FDUSD?
There are multiple ways to categorize stablecoins, such as by their reserve types, whether they are fully collateralized, or if they are held in decentralized custody.
By conventional standards, stablecoins can be classified as fiat-backed, over-collateralized and algorithmic. TUSD, along with USDT, USDC and FDUSD, are fiat-backed stablecoins. This type of stablecoin normally maintains its value by being fully collateralized with fiat currencies, primarily the U.S. dollar.
As we mentioned earlier, TUSD is a front-runner among its peers. It has partnered with a top accounting firm to obtain technical support for the attestation of TUSD reserves, while Chainlink uses its industry-leading decentralized oracle network to record reserve information on-chain. This boosts TUSD’s transparency and verifiability, and ensures that TUSD is always sufficiently backed by off-chain fiat reserves.
Following the above-mentioned classification method, DAI is categorized as an over-collateralized stablecoin, with ETH and USDC as its primary collateral, allowing it to mitigate market risks associated with the high volatility of ETH. USDe, on the other hand, is a synthetic interest-bearing stablecoin. Users can deposit ETH or liquid staked ETH (such as stETH) to mint USDe and earn yields. Users can select stablecoins based on their needs and use cases.
3. The total market value of stablecoins has surged by over $30 billion over the past 5 months. What development trends do you see in this sector?
The increase in market value over the past months indicates a significant surge in demand and adoption of stablecoins within the digital finance landscape. I see this increase as an indication of growing confidence among users in the stability and utility of stablecoins. This is a positive sign, as it reflects the expanding role of stablecoins as a preferred digital asset for various financial activities.
With increasing acceptance of stablecoins as a reliable store of value and medium of exchange, stablecoins have great potential to reshape and enhance traditional financial practices in the digital age. TUSD, with our focus on security and transparency, is perfectly placed to contribute significantly to this trend. We are confident in providing users with what they require, a trusted stablecoin option for everyday transactions.
4. An increasing number of players have entered the stablecoin sector, accompanied by the passing of relevant bills. Does this suggest that there is widespread public adoption of stablecoins?
As you mentioned, there is definitely a surge in the number of players in the stablecoin market, as well as increased regulatory attention. I wouldn’t say there is already widespread public use of stablecoins yet, but there are clear indicators of that trend. It’s evident that stablecoins are attracting the attention of the general public and this digital asset is assuming an increasingly prominent role in the cryptocurrency ecosystem.
Another sign of increasing stablecoin adoption is its growing presence in traditional finance. There is a clear trend of TradFi institutions moving into the DeFi world. You would have seen the recent news of Mastercard, PayPal, and other global banks entering and developing in the cryptocurrency space. As more financial services integrate stablecoins, they will increasingly facilitate everyday transactions, cross-border payments, and serve as a bridge between fiat and digital currencies.
5. With USDT’s dominating over 69% of the market, do new stablecoins still stand a chance?
It is true that USDT currently holds a majority of the market share, but other stablecoins definitely still have significant opportunities for growth. Every stablecoin has its own use cases and different geographical contexts. These differences allow for unique development opportunities for each stablecoin.
For instance, stablecoins like USDE may be better suited for earning yields, while those like DAI would appeal to users who prefer a high level of decentralization.
As for TUSD, our aim is to be a digital currency built for the new global payment system. Hence, two of our major priorities are accessibility and usability. TUSD is available on numerous leading exchanges and DeFi platforms, ensuring accessibility for investors across the globe. TUSD is also compatible with existing payment infrastructure and well integrated with digital wallets and payment platforms. This makes it convenient for users to adopt and use TUSD for their daily financial needs, wherever they are in the world.
6. How is TUSD’s ecosystem development going? What are TUSD’s use cases?
TUSD’s ecosystem development is thriving, with a diverse array of applications and use cases. Currently, TUSD can be obtained on over 80 cryptocurrency exchanges and DeFi protocols, such as Binance, Bitget, HTX, Poloniex, Kucoin, and many more. TUSD is also natively deployed on prominent networks such as Ethereum, TRON, Avalanche, and BSC, leveraging the robust infrastructure of these platforms for seamless transactions and interactions.
TUSD is a trusted payment method in a wide variety of real-world use cases. Our partnerships and payment integrations include NOWPayments, ChangeNOW, ivendPay, Travala, UQUID, HYVE, B2BinPay, and Crypto.com. Users can seamlessly use TUSD for their everyday transactions.
We are continuously forging new partnerships with leading exchanges and companies in different regions around the world to expand the reach and utility of TUSD. This vibrant ecosystem of TUSD will continue to expand across industries and use cases.
7. According to statistics by DeFiLlama, the market cap of stablecoins on May 31 totalled $160.863 billion, an increase of $30 billion since the start of the year. USDT’s market cap stands at $111.5 billion, dominating at a 69% market share. There is a rise of new stablecoins like USDe. How does TUSD view such competition? How does TUSD plan to increase its market share?
Competition is an interesting topic, because we can see it in two contrasting ways. We view this increased competition as cause for both celebration and vigilance.
On a macro scale, rising market capitalisation and an increase in the number of competitors signify wider adoption of stablecoins, which is, of course, cause for optimism. This validates the growing prominence of stablecoins in the digital finance landscape.
However, we also remain vigilant, because competition necessitates continuous improvement and innovation to maintain our position and capture a larger market share. We will continue our steadfast commitment to transparency and security, because as stablecoins enter mainstream usage, these qualities will be paramount for users who look to cryptocurrency not for speculation but as a reliable store of value.
8. What will be the focus of TUSD’s future development? Are there any plans for ecosystem development?
One long-term plan of TUSD is expansion. We have been consistently partnering leading exchanges globally since 2018, and we look forward to bringing TUSD to even more people across the world with each partnership.
Take for example our recent partnerships with leading players in the digital finance space, such as Bitci, a leading cryptocurrency exchange in Turkey, and ReHold, a multi-chain DeFi aggregator. These partnerships extend the reach of TUSD to different regions of the world and to users with different financial needs and goals.
With this continual expansion, we look forward to continued growth and user adoption in the crypto landscape in the years to come.
9. What vision do you have for the future of the stablecoin industry?
We look forward to witnessing the increasing mainstream acceptance of cryptocurrencies. There are signs that the cryptocurrency ecosystem is at a point of change. It is maturing from merely speculative investments to becoming a daily medium of exchange. Stablecoins like TUSD are poised to fulfill this pivotal role.
We look forward to offering a trusted stablecoin option to more and more users in their daily transactions and becoming an integral part of everyday finance. Overall, we hold an optimistic outlook for the crypto sector and eagerly await its future developments.
About TrueUSD
TrueUSD (TUSD) is the first USD pegged stablecoin with live on-chain attestations by independent third-party institutions. It has been listed on 100+ trading platforms such as Binance and Huobi, and is live on 10+ mainstream public chains including Ethereum, TRON, Avalanche, BNB Chain, Fantom, and Polygon. TUSD is attested daily by MooreHK,a global leading accounting firm, and integrated with Chainlink’s industry leading Proof of Reserve to secure minting and further ensure transparency and reliability. TUSD was granted statutory status as authorized digital currency and medium of exchange in the Commonwealth of Dominica on October 7th 2022.
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