Binance decided not to list TrueUSD yet, in light of a recent increase in price to $1.30 USD, which kind of undermines the idea of a stablecoin pegged one-to-one to dollar.
TrueUSD is a brainchild of TrustToken, a company from San-Francisco. The coin, which was released in March, is pegged to the US dollar much like its competitor Tether.
However, the developers claim that only TrueUSD is “fully backed”. They prove it by utilizing escrow accounts which are transparent to all participants of the system, with monthly audits being released to the public.
“Having U.S. dollars as collateralization held in escrow in addition to our regular accounting reports provides traders with reassurance that they can trust in TrueUSD,” said Rafael Cosman, co-founder, and CTO of TrustToken.
The pegging of digital assets to fiat doesn’t resonate well with many members of the crypto community. However, some view this practice as a protection mechanism against the volatility of the market.
Binance set the launch date of TrueUSD (TUSD) on May 18. The traders will be able to purchase the new stablecoin with Ethereum, Bitcoin or Binance coin. Despite being already listed on Bittrex since March, the impact of listing on Binance is expected to be much greater.