A new partnership between TrueUSD () and accounting firm Armanino purportedly allows traders to conduct instant audits of the ’s backing. The was by TrueUSD in a blog post on Mar. 5.
The dashboard developed by Armanino purportedly enables traders to monitor TrueUSD balances and collateralized funds. “Armanino connects directly to third-party escrow accounts holding the dollars that collateralize TrueUSD , and runs their own nodes to ensure accurate TUSD supply,” the post details.
Rafael Cosman, Co-founder and Head of Engineering and Product at TrustToken, said that “with real-time confirmation of funds provided by one of the world’s leading accounting firms, traders will know at all times that their are backed by real-world value.”
Stablecoins are that are backed by a physical asset, currency, or even an algorithm, and are generally more stable in value than other crypto assets. TrueUSD is backed 1:1 with U.S. dollars.
The move by TrueUSD was taken in a bid to bring more transparency to , as there have been that some stablecoins actually have enough fiat in reserve to redeem all with the backing assets, should the need arise.
Last year, stablecoin Tether (), which is pegged to U.S. dollar, from the community after it with an auditor firm before the official audit was released. Without an audit, it could not be proven that Tether in fact has enough reserves, or that they are not being used for something besides backing Tether .
Later, Tether’s long-contested assertion that its digital currency is backed by the appropriate amount of dollars was seemingly . An audit was purportedly conducted and completed by law practice Freeh Sporkin & Sullivan LLP (FSS). While the audit reportedly found the proper amount of reserves, FSS noted in a statement:
“FSS is not an accounting firm and did not perform the above review and confirmations using Generally Accepted Accounting Principles […] FSS has assumed, without further inquiry, that the bank personnel providing the confirmations were duly authorized to provide such confirmations, and that the confirmations were correct.”
At press time, market capitalization of TrueUSD is around $205 million, according to . It is currently the third largest dollar-pegged stablecoin behind USDT and USD Coin (USDC), which have market capitalizations of $2 billion and $240 million, respectively.
Published at Wed, 06 Mar 2019 00:08:54 +0000
