The past several months have seen many different stablecoins hit media headlines. Adding to the already competitive stablecoin space, TrustToken has announced a partnership with a top accounting business to provide new capabilities.
A new method of trust
According to a press release submitted to Crypto Insider, TrustToken, with its TrueUSD (TUSD) stablecoin, has partnered with top accounting business Armanino to provide real-time stablecoin confirmation. Noted on Armanino’s website, the firm is “one of the top 25 largest independent accounting and business consulting firm[s] in the United States.”
Armanino independently built a “real-time dashboard”, which integrates third-party validation, for exclusive use by TrustToken, the press release said. Essentially, the dashboard should provide added transparency to the market regarding TrueUSD funds.
Stablecoin backing has been a hot topic in crypto. Tether’s USDT stablecoin, for example, has seen significant scrutiny over past months due to lack of clarity regarding the actual dollar supply reportedly backing each token.
Armanino’s dashboard aims to solve this issue, allowing for fast confirmation of TrueUSD funds. Rafael Cosman, co-founder and head of engineering and product at TrustToken, explained via email correspondence with Crypto Insider, that Armanino verifies “that the balances of TrueUSD funds in the escrow account (also not controlled by TrueUSD) and TUSD tokens in circulation always match 1-for-1.”. Through providing users access to check the backed funds creates a true real-time stablecoin confirmation that may be checked anytime.
Cosman continued to explain further:
“To do this, Armanino runs their own Eth node to directly connect information from the blockchain to the actual funds in the bank account. The current process that all major regulated stablecoins use is to go through this process one time per month. The new dashboard will provide updates in minutes, not weeks or months.”
This dashboard should see a public launch by early April, the press release said, giving the public the ability to see TrueUSD amounts and collateral on Armanino’s website.
In the mentioned email correspondence, Cosman spoke on TrustToken’s previous methods comparative to the market. “TrustToken built the infrastructure and the process that all other competitors are now using or attempting to emulate,” he said. “This process set the standard for monthly attestations. We think that the new standard should move towards full transparency of the underlying funds, which means that users can view the real balance of the funds that collateralize TrueUSD in real time.”
Cosman also stated the importance of trust in the process. “Redeemability and the knowledge that the funds are actually backing up the token is what leads to price stability. TrueUSD has been the most price-stable regulated stablecoin on the market, and we attribute this to the trust that our users have in the product and the underlying funds,” Cosman added in the correspondence.
Armanino’s director of risk assurance and advisory Noah Buxton sees TrustToken as an established player in the market. “With their proven track record and pioneering mindset, we see TrustToken as the perfect client partnership to drive innovation in the crypto and accounting industries,” Buxton said in the press release.
TrustToken also is announcing a lower redemption and purchase minimum, from $10,000 to $1,000, Cosman said in email correspondence. Former $10,000 requirements stemmed from banking and other partnership abilities. “We have spearheaded the infrastructure that connects any real-world asset to the blockchain, something that banks and trust companies had never dealt with in the past,” he said. Although, through TrustToken’s efforts, the level has been lowered to $1,000, with the company looking to potentially remove these minimum requirements on the whole in the future.