TUSD, a USD-backed stablecoin, integrates Chainlink’s proof of reserve to ensure mintage, enhance transparency, and improve reliability. The goal is to ensure that the entire TUSD ecosystem is stable and that customers can quickly redeem their tokens.
in a statement On Feb. 22, TUSD issuer Archblock said that all TUSD reserve data will be funneled through Chainlink, a decentralized Oracle provider available, among other chains, on Ethereum. In this way, it will be easy for users, anywhere in the world and at any time, to check whether each stablecoin in circulation is sufficiently backed by USD.
Archblock CEO Ryan Christensen said that Chainlink’s proof of reserve will always ensure that all TUSD in circulation is always collateralized.
“We are excited to use Chainlink’s proof of reserve to improve the transparency and verifiability of our stablecoin. As the industry standard decentralized Oracle network, Chainlink helps ensure that TUSD is always secured by off-chain fiat reserves, furthering TUSD’s commitment to trust and transparency.”
Ryan Christensen, CEO of Archblock
The Network Firm LLP, “TNF”, handles reserve data of thousands of dollars, aggregating all dollar information from relevant financial institutions in real time. However, by passing this data through Chainlink’s proof-of-reserve systems, smart contracts will take over, checking to see if TUSD in circulation exceeds the amount of USD in reserve. This verification will be automated and will be done each time before a new token is accumulated.
In addition to reliability and stability, the decision to incorporate Chainlink is to create transparency and increase user trust.
Chainlink acts as a middleware and its node verifies if off-chain data sources are valid before being used as inputs to trigger a smart contract.
By opening USD data feeds from financial institutions that hold TUSD reserves and funneling them through Chainlink, users will be confident that all their assets are collateralized.
The collapse of FTX, a cryptocurrency exchange, and the news that its CEO, Sam Bankman-Fried, was misusing user funds, forced exchanges and CeFi platforms to verify their reserves. Binance, OKX, and other companies have issued proof of reserve statements, assuring users that the exchange is holding their assets safely.
As of February 24, TUSD has a circulating supply of $946,634,805, ranked the 53rd most valuable cryptocurrency by CoinMarketCap.
