TrueUSD Savings Accounts – How to Make Money With TrueUSD

Last updated on 6th April 2021

TrueUSD was created by a team representing Google, UC Berkeley, Stanford, and Palantir. Its backers include Stanford-StartX, Founders Fund Angel, and Blocktower Capital. The team behind TUSD has developed a legal framework in cooperation with leading experts for collateralized cryptocurrencies and boasts a network of compliance, fiduciary, and banking partners.

TrueUSD is a legally protected, fully collateralized, and third-party verified ERC20 stablecoin backed by the US dollar. It was the first digital asset created on the TrustToken platform. You can buy and sell this stablecoin all over the world.

How Does TUSD Work?

TUSD runs on the Ethereum and Binance blockchains. You can issue and redeem the stablecoin through these smart contracts. Whenever someone buys TUSD with USD through TrustToken, the equivalent of TUSD is created and issued via smart contract automatically. Then, this amount is added to the TUSD in circulation. When someone redeems the stablecoin through the TrustToken platform, the tokens are burned via smart contract automatically. In other words, the amount is removed from the TUSD in circulation. The platform credits the user with USD equivalent to the redeemed token amount.

TrustToken doesn’t charge any fees to buy or redeem TUSD. They make money by collecting interest on the USD within their accounts. TUSD is pegged to the US dollar at a 1:1 ratio. Third party escrow accounts are key to proper functioning of the stablecoin. Once the escrow service verifies the funds, the TUSD smart contract and the API interact. Tokens are issued 1:1 and sent to the respective wallet.

Guaranteeing and Maintaining Transparency

TrustToken cannot issue an infinite number of tokens. The smart contracts they use are publicly audited and the funds are not accessible by the team of the company. After passing KYC, the user can send US dollars to a fiduciary partner’s account directly. Numerous escrow accounts are used to minimize counterparty risk and to protect TUSD holders from fraud.

How Does TrueUSD Stay at $1?

The peg guarantees stable value. TUSD is always backed by USD 1:1 in dedicated accounts. This isn’t to say it’s always exchanged 1:1. Some exchanges misprice TUSD, giving arbitrageurs an opportunity to make a profit.

TrustToken is gradually opening access to maintain stability from the start. The first (alpha) version of the token came with a $1000 lower limit for redemption. The next version, 1.0, lowered the redemption limit to make lower amount redemptions possible.

TrueUSD Market Cap

The token’s market cap is currently $326.62 million with 326,170,448 coins in circulation. Data on maximum possible supply is not available.

How Does the Distribution Work?

TrustToken distributes US dollar holdings in different bank accounts that belong to a number of trust partners. Authorized partners conduct audits monthly and publish the collateralized holdings every day.

How and by Whom is TrueUSD Regulated?

TrustToken partners with third-party unaffiliated fiduciary companies in Nevada. They hold funds in escrow. In turn, Nevada State Trust Companies are regulated by the Nevada Department of Business & Industry, Financial Institutions Division. TrustToken is also registered with FinCEN as a federal Money Service Business.

How are the Coins Secured?

As mentioned, trust partners handle the funds backing TrueUSD directly for increased security. Each token a user buys is minted to their ETH wallet address and represents a redeemable certificate for the corresponding amount in USD.

How Long do TrueUSD Transactions Take?

Between 15 seconds and 5 minutes.

How to use and who can use TrueUSD?

TUSD can be used as substitute for USD in trading, including on platforms that don’t require ID verification. One possible application is mainstream commerce. Businesses and ordinary people can use TUSD for their daily transactions. The benefits of this include high transaction speed, global reach, low to no volatility, and more. You can get a loan, pay wages, or even buy food with stablecoins. Soon, we will witness the arrival of a new economy of financial transactions and applications.

Financial institutions can use the token to get into the crypto market. Putting a large amount of money into one of the many new digital coins is not the same as putting the same amount into a legally enforceable US dollar ownership certificate.

Crypto traders who want to operate on the market without being exposed to Bitcoin/Ethereum immediately will derive great benefit from TUSD. It can be trusted to hedge against volatility.

Finally, developing markets are coming to rely on stablecoins for trade more and more often. TUSD is a good choice for them.

Platforms to Trade TrueUSD Against Cryptocurrencies

It’s easy to transfer TUSD from one platform to another. You can use it to cash out cryptocurrency. You save money from fiat money bank transfers. It enables fast borderless money transfers. There are many platforms making this possible. TrueUSD is currently listed on Binance, Bittrex, Upbit, Poloniex, Kucoin and many other exchanges.

TrueUSD on Binance

As noted, TUSD runs on the Binance chain. It’s not connected to any cryptocurrency exchange, making it different from most other stablecoins. Binance listed TUSD in May 2018. Now, it offers TUSD/BNB, TUSD/USDT (Tether), ETH/TUSD, XRP/TUSD, EOS/TUSD and XLM/TUSD for trading.

TrueUSD on Bittrex

On Bittrex, you can exchange TrueUSD for BTC, Tether, and other cryptos and stablecoins.

TrueUSD on Poloniex

Poloniex offers TUSD wallets, in which you can deposit the coin or trade it for Tether and USDC.

TrueUSD on Coinbase

On this exchange, you can sell TUSD for BTC or ETH. Then, you can transfer your BTC or ETH from your wallet on Coinbase wallet to an exchange that supports TUSD, like Binance, Bitfinex, Bitso, or HitBTC.

TrueUSD on Kucoin

After opening an account, you can proceed to buy TrueUSD on KuCoin. The process is a bit more complex here. It involves entering a referral code to register. Then, there’s a puzzle to complete. You’ll get a confirmation by email. In your inbox, click on the link in the KuCoin account validation message, which will take you to the login page.

Then, you fund your account with TUSD. Under “Assets”, you choose the amount, then press “Deposit” on that line or click on the “Deposit” menu. You’ll see this on the left side of the page.

How to Convert TUSD to Bitcoin

You can do this on Coinswitch, Coinyep, or another supporting exchange. On April 5, 2021, 1 TrueUSD went for 0.00001722 BTC. On Coinyep, the rate is better: 1 TrueUSD = 0.0000179 Bitcoin. It pays to shop around for the best rate, especially if you’re exchanging a large amount. You can calculate rates with this tool for free. It’s possible to use Coinsquare to purchase Bitcoin too.

Where to Buy TUSD with USD

Coinsquare is one option that lets you buy TrueUSD with USD. You need to sign up and verify your account. You use USD to fund it, then buy Bitcoin or Ethereum. The next step is withdrawing your cryptocurrency of choice to an altcoin exchange or your private wallet. Then, you can buy TUSD.

TUSD Withdrawal Fees

The fee is 1 TUSD on Binance. FTX charges no fees on deposits and withdrawals, in stark contrast to the 50.048 TUSD fee on Bitfinex. Again, it pays to shop around for the lowest fee.

How to buy TUSD With Credit Card

Bitdegree and other similar exchanges confirm purchases of TUSD with credit and debit card instantly. On average, you can expect payout in 24 hours. Registration is quick and not many details are required. KYC verification is minimal as well. Buying TUSD instantly with credit card is the most effective and simplest way to buy this cutting edge, alternative asset. It’s risk free, quick, and easy.

Regardless of which exchange you choose, you need to select TUSD from the drop down menu and the fiat currency you’ll be using to make payment. Then, enter how much TUSD you want to buy followed by your TUSD wallet address. The second to last step is entering your billing information at checkout. Make sure it’s accurate. When paying with Mastercard or Visa, there is zero fraud risk.

The final step is getting the TUSD in your account. You don’t need to create a new account to complete the sale.

How to Cash out TUSD

This is possible through Trusttoken.com. If you haven’t signed up yet, it’s possible to apply to an early access group. After providing personal details for KYC/AML verification, which can take a few days, you must submit the Ethereum address, from which you’d like to send your TUSD tokens. The system adds this address to a whitelist, where you can burn TUSD tokens. The next step is providing the bank wire address, to which the respective trust partner managing escrow accounts will send fiat money. Then, you send the tokens to be burned to the TUSD smart contract. You’ll be instructed how to do this using your ETH wallet. The tokens you cash out are taken out of circulation (burned). The trust partner managing the funds in escrow will make a wire transfer for the corresponding amount in USD minus any purchase and wire fees.

TrueUSD Savings Accounts

The following table shows the maximum interest per year several typical fintechs are offering TUSD holders. In comparison, you can’t hope for more than 1.5% APY from a traditional bank.

Comparison Table

Exchanges TUSD approx. APYs Terms
Youhodler USDC interest accounts
12%
  • Flexible Savings
  • weekly payouts
  • 50 $TUSD minimum
  • compounding interest
Details
Coinloan USDC earning
10.3%
  • Flexible Savings
  • Interest accrues daily
  • monthly payouts
  • no minimum
  • compounding interest
Details
Nexo USDC earning
10%
  • Flexible Savings
  • Interest accrues daily
  • monthly payouts
  • 1 $TUSD minimum
  • compounding interest
Details
Crypto.com USD Coin interest accounts
6-8%
  • Flexible Savings
  • interest accrues daily
  • 250 $TUSD minimum
  • no compounding
Details

Bottom line: TUSD Pluses and Minuses

The token consuming and stamping framework makes sure 1 TUSD always equals 1 USD. The token is backed by USD, to which TrustToken doesn’t have direct access.

TUSD is an ERC20 token, which you can hold in your Ethereum wallet. While this is convenient, it’s not without its downsides. TUSD is vulnerable to any weaknesses, to which Ethereum is exposed. This generates not insignificant counterparty risk.

TUSD is fully centralized. This ensures stability, but it also means TrustToken is allowed to suspend a user’s account or even confiscate any TUSD in it if they feel the person has violated a regulation or law the company must obey or the terms and conditions of use.

Mandatory KYC/AML compliance serves to increase safety and security. However, some blockchain traders and investors may perceive extensive KYC compliance as an invasion of privacy.


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