TrueUSD has just announced that it will use Chainlink (LINK) Proof of Reserve (PoR) to secure the minting of its fully collateralized USD-backed stablecoin TUSD. The news comes after TrueUSD launched TCNH, a TRON-based stablecoin pegged to the offshore Chinese currency Yuan in December 2022.
TrueUSD is the first stablecoin to programmatically manage to mint through real-time on-chain verification of off-chain reserves. This can potentially be a paradigm shift regarding decentralization, transparency, and impartial verification.
How the planned minting course will operate
The TUSD reserve data is aggregated by The Community Agency LLP (TNF), an independent industry-specialized accounting firm in the United States. TNF will combine all reserve data of US $ held at financial institutions in real-time and serve that data on-chain via Chainlink’s oracle network. That is referred to as proof of reserve.
TUSD sensible contract will then use this Proof of Reserve data feed to routinely check whether or not the total supply of TUSD exceeds the total quantity of US dollars held in reserve earlier than a brand new stablecoin is minted.
The automated workflow is evident within the sensible contract code and supported by open, impartial information feeds. This confirms TUSD’s commitment to ensuring the ecosystem’s soundness and the redeemability of the underlying dollars for customers.
TUSD customers can rest assured that they have a complete and accurate supply of information about the reserves that back the TUSD stablecoin.
Sergey Nazarov, a co-founder of Chainlink, commented on the event:
“We’re proud to assist TUSD in its efforts to carry new layers of transparency, danger administration, and safety to its stablecoin minting course. TUSD is ready to provide its customers higher levels of assurance and confidence with Chainlink Proof of Reserve and to help carry higher stability to stablecoins and the broader crypto industry.”
