Dialogue with TrustToken – We are the Only Player who is Purely Focusing on Creating Stablecoins

23 Mar, 2019 11:03
source: 香港奇点财经 Singularity Financial

During Token2049 event in Hong Kong, Singularity Financial had the pleasure of sitting down to conduct an in depth interview with TrueUSD Co-Founder and head of Engineering and Product Mr Rafael Cosman. Below is the details of the conversation.

Q: The stablecoin landscape is heating up at the moment, big corporations like JP Morgan Chase, Facebook and IBM are issuing or on the process of issuing their own tokens. How to differentiate your product with the rest of competitors?

A: First of all, it is really exciting because it validates our business. Facebook will not launch a product like this if they do not see multi-billion dollar business here. We position ourselves as most trusted stablecoins on the market. One of the things to differentiate us when it comes to trust is, all our competitors have done things like selling their tokens at $.99 in order to pump up the market cap, or shut down accounts, that break trust to the users. The reason we are called TrueUSD or TrustToken because we innovate in this space.

Out of all the competitors, we are the only player who is purely focusing on creating stablecoins. That is why we are faster, we invest more into our products. Later this year, we are going to roll out a series of tokenized products that we are very excited about. We are going to be the one stop shop for on-ramp and off-ramp a whole series of crypto currencies. We are looking at Japanese Yen, HK Dollar, Aussie Dollar, Canadian Dollar, British Pound and Euro individually. Then we will bring in partners into our eco-system to build different types of products on top of it…these products will enable a huge number of user cases.

Q: TrueUSD, for the first time, has open source digital dollar that anyone can plug into. It is a standard protocol. Can you explain the current usage or partnerships you have formed by utilizing this ecosystem?

When we launched in March, 2018, we were the first stablecoin project to provide traders with regular attestations of the funds that collateralize TrueUSD, ensuring that for every TUSD in circulation there is exactly 1 US dollar held in a third party escrow account. As we enter our second year of operation, our focus is on expanding the use cases for TrueUSD. This means that we will be focused on many integrations with apps across both the crypto but also traditional financial ecosystem. Using TrueUSD as a stablecoin for trading is only the most basic use case, and we are excited to be further innovating new solutions for the industry.

we are moving towards more integrations, partnerships, and use cases for TrueUSD for 2019. Our partnership with Nexo is an exciting step in this direction. With Nexo, traders are able to use TrueUSD as collateral to take out fiat loans. For larger liquidity providers it also allows them to earn interest on TrueUSD deposits that are higher than what you may earn with your bank. But above all, this marks an exciting direction as more traders begin to use TrueUSD across many different types of applications.

And TrustToken has partnered with Armanino, a top 25 accounting firm in the US, to provide real-time verification of the funds that back the TrueUSD stablecoin. Users will be able to view the balance of the funds in the escrow account that back TrueUSD and the total TUSD tokens on a dashboard. The dashboard connects directly to the accounts with an API integration and matches this information with TUSD information coming directly from an Eth node. With the dashboard, the public will be able to see confirmation of the funds updated in minutes not months. The current process for all major regulated stablecoins involves publishing an attestation one time per month. This is setting a new standard in the industry moving forward.

Q: Recently your smart contract has passed three independent security audits conducted by Certik, SlowMist and Zeppelin, with no vulnerabilities found. What is current trading volume for TUSD? And how does the company safe keep all the tokens? What types of compliance measurement are taken so far?

While market cap and trading volume are important for measuring the overall size of a project, we think that the most important metric is how often people are actually using TrueUSD to trade, transact, and invest. We’ve been thrilled to be the most traded stablecoin in the world that is regulated and fully redeemable for USD. Our focus now is on building out more use cases so that our users can not only trade within the crypto world, but seamlessly move between fiat and crypto and begin to take advantage of the many benefits that are arising for stablecoin users in the crypto world.

We partner with licensed trust companies and banks to securely hold the funds backing TrueUSD tokens. For increased security, the trust companies handle all funds directly and the TrueUSD team does not have access, nor is involved in the transfer of, the escrowed funds.

When you complete the KYC/AML process and wire funds to the third-party escrow accounts, an equivalent amount of TUSD is freshly minted to your ethereum address. Each TUSD represents a redeemable certificate for one US Dollar held in escrow for the benefit of the TUSD holder. The legal privileges of token holders are described in the TrueUSD Terms of Use.

Q: In term of the license, TrueUSD is currently registered with the Financial Crimes Enforcement Network, known as FinCEN. However, FinCEN is not a traditional regulatory body. In fact, FinCEN is a bureau of the US Treasury Department whose Director is appointed by the Secretary of the Treasury and reports to the Treasury under Secretary for Terrorism and Financial Intelligence. So do you still see yourself as a “regulated” stablecoin from that perspective?

Essentially,TUSD is a legally compliant issuing company registered under federal regulations and federal audits, and TUSD strictly follows compliance procedures, such as KYC, to ensure that investors and invested assets are in compliance.

In the meantime, stablecoin projects can take it on themselves to seek out regulation in their home state and to be as transparent as possible. That’s what we’ve done. We’re regulated both at the state level (through our Nevada trust company) and the national level (through our MSB from FinCEN).

Q: AutoSweep developed by TrustToken will let exchanges create unique TUSD deposit addresses to be automatically settled into a primary wallet. Could you explain how it work for AutoSweep feature? Why the feature innovate the product comparing to other stablecoins?

AutoSweep is a registry for client deposit addresses that makes it easy to accept and manage TrueUSD deposits.

With AutoSweep, exchanges can give each client a unique TUSD deposit address that automatically settles into the exchange’s primary wallet, with zero gas fees. AutoSweep can save exchanges from the gas fees and accounting overhead that are currently needed to receive TUSD deposits from large numbers of clients.

Creating a TrueUSD AutoSweep address is similar to creating an email alias on a company email account

Likewise, AutoSweep allows anyone to create multiple outward-facing deposit Ethereum addresses that automatically settle into a single Ethereum wallet.

Q: Asia is the largest market for TrueUSD at the moment, so what is the company’s plan to expand into the local market?

This year, as we enter our second year of operation, our focus is on expanding the use cases for TrueUSD. This means that we will be focused on many integrations with apps across both the crypto but also traditional financial ecosystem. Using TrueUSD as a stablecoin for trading is only the most basic use case, and we are excited to be further innovating new solutions for the industry.