New Partnership Allows TrueUSD Traders to Audit The Coin’s Backing Assets

Stablecoin TrueUSD has partnered with audit agency Armanino to permit merchants to conduct immediate audits of the coin’s backing.

A brand new partnership between stablecoin TrueUSD (TUSD) and accounting agency Armanino purportedly permits merchants to conduct immediate audits of the token’s backing. The information was introduced by TrueUSD in a weblog put up on Mar. 5.

The dashboard developed by Armanino purportedly permits merchants to observe TrueUSD token balances and collateralized funds. “Armanino connects on to third-party escrow accounts holding the U.S. {dollars} that collateralize TrueUSD tokens, and runs their very own ETH nodes to make sure correct TUSD token provide,” the put up particulars.

Rafael Cosman, Co-founder and Head of Engineering and Product at TrustToken, stated that “with real-time affirmation of funds supplied by one of many world’s main accounting corporations, merchants will know always that their tokens are backed by real-world worth.”

Stablecoins are cryptocurrencies which might be backed by a bodily asset, fiat currency, and even an algorithm, and are usually extra steady in worth than different crypto property. TrueUSD is backed 1:1 with U.S. {dollars}.

The transfer by TrueUSD was taken in a bid to deliver extra transparency to stablecoins, as there have been doubts that some stablecoins even have sufficient fiat in reserve to redeem all tokens with the backing property, ought to the necessity come up.

Last yr, stablecoin Tether (USDT), which is pegged to U.S. greenback, fell underneath scrutiny from the cryptocurrency neighborhood after it broke its reference to an auditor agency earlier than the official audit was launched. Without an audit, it couldn’t be confirmed that Tether in reality has sufficient reserves, or that they aren’t getting used for one thing apart from backing Tether tokens.

Later, Tether’s long-contested assertion that its digital currency is backed by the suitable quantity of {dollars} was seemingly confirmed. An audit was purportedly performed and accomplished by regulation follow Freeh Sporkin & Sullivan LLP (FSS). While the audit reportedly discovered the right quantity of reserves, FSS famous in a press release:

“FSS shouldn’t be an accounting agency and didn’t carry out the above assessment and confirmations utilizing Generally Accepted Accounting Principles […] FSS has assumed, with out additional inquiry, that the financial institution personnel offering the confirmations had been duly approved to supply such confirmations, and that the confirmations had been appropriate.”

At press time, market capitalization of TrueUSD is round $205 million, in response to CoinMarketCap. It is at the moment the third largest dollar-pegged stablecoin behind USDT and USD Coin (USDC), which have market capitalizations of $2 billion and $240 million, respectively.

Original supply: https://cointelegraph.com/news/new-partnership-allows-trueusd-traders-to-audit-the-coins-backing-assets

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