- TUSD is the first stablecoin to control minting with on-chain verification in real time
- The smart contract does not mint new coins if the total supply of TUSD exceeds USD in reserves
Fully USD-backed stablecoin TrueUSD (TUSD) will use Chainlink Proof of Reserve to secure the minting of the stablecoin, Bankless Times learned from a press release. TUSD becomes the first stablecoin to control minting with on-chain verification of off-chain reserves in real time, demonstrating a new level of transparency and decentralization.
Automatic verification of USD reserves
This is the first framework of Secure Mint control of a fully collateralized stablecoin. USD reserves are verified before new minting automatically.
Smart contract doesn’t mint if unfeasible
The Network Firm, a US accounting company, aggregates reserve data for TUSD in real-time and provides it via Chainlink’s decentralized oracle network on-chain. The reserve data is based on funds held in financial institutions. The stablecoin’s smart contract does not mint new coins if the total supply of TUSD exceeds the total USD in reserves.
TUSD is a regulated, fully collateralized stablecoin with USD backing. It is available on over 150 markets and dozens of cryptocurrency exchanges.
A more reliable form of payment and collateral
TUSD holders can trust in a transparent, accessible, and accurate source of information about reserves now that the integration of Chainlink’s decentralized infrastructure has become fact. The final outcome is that the stablecoin is becoming a highly reliable form of payment and collateral across DeFi.
Chainlink cofounder Sergey Nazarov commented:
We are proud to support TUSD in its efforts to bring new layers of transparency, risk management, and security to its stablecoin minting process. With Chainlink Proof of Reserve, TUSD is able to provide greater levels of assurance and confidence to its users, and help bring greater stability to stablecoins and the broader crypto industry.
The automated verification workflow in the smart contract code is transparent. Independent and open data feeds support it, reflecting the redeemability of the underlying fiat for users as well as TUSD’s commitment to the stability of its system.
