How It Works
TUSD is minted by depositing USD with authorized custodians, historically Prime Trust and more recently Asian-based banking partners. Minting and redemption are handled through the TrueCurrency platform. Chainlink Proof of Reserve oracles are supposed to verify on-chain that total TUSD supply does not exceed held reserves. The protocol experienced issues in 2023 when Prime Trust was placed into receivership, causing temporary minting halts and de-peg events. Reserve attestations are now conducted by independent accounting firms on a regular basis.
Backing Type: Fiat-Backed
Fiat-backed stablecoins are collateralized by real-world assets held in bank accounts or custodied trust accounts — typically US dollars, Treasury bills, or cash equivalents. The issuer is responsible for maintaining 1:1 reserves and publishing regular attestations.