List Of Banks Managing the USD Reserve Backing TrueUSD
TrueUSD, the first regulated stablecoin that is fully backed by the US Dollar has partnered up with internationally renowned banks and custodial accounts to lower the risk of transactions.
TrueUSD (TUSD) is the first independently verified digital asset redeemable at 1:1 US Dollar. According to reports by Coinmarketcap, TUSD now has a market cap of $500 million, a significant increase from the $150 million recorded in 2020.
The recent surge has reportedly been attributed to TUSD’s safeguarding mechanisms, the first being its transparent reserves while the second, being its strategic partnerships with banks. To date, TrueUSD has partnered up with five trusted banks which include, Silvergate Bank, Signature Bank, Fist Digital Trust, Prime Trust, and BitGo.
Silvergate bank became one of the first banks to set up accounts for cryptocurrency transactions back in 2014. To date, Silvergate has provided services for 750 crypto exchanges. In 2017, Silvergate launched a dedicated trading network created to allow investors to transact funds between crypto exchanges globally. TUSD, through the partnership, leverages the bank SIlvergate Exchange Network (SEN) to provide users with efficient token minting services.
Signature Bank became the first FDIC-insured bank to launch a blockchain-based digital payments platform. The bank introduced a new platform Signet in January 2019 to provide fast and stable real-time crypto payment services. Signet is a payment ecosystem built on the blockchain. The platform is among the first platforms approved by the New York State Department of Finance Services. The platform is based on Ethereum allowing users to make real-time payments in USD. Signature Bank and TUSD became their collaboration on June 18, 2021. TUSD was then integrated into Signet. With Signet, TUSD can provide free-of-charge transaction services to users catering to their needs.
Prime Trust is a chartered regulated financial institution and an industry-leading trust company. The bank is overseen by the banking commissioner’s office at the Nevada Financial Institution Division. Through its partnership with TUSD, the bank enables the holder to mint and redeem their tokens while providing optimal instant settlement.
BitGo, headquartered in Palo Alto, is one of the largest and oldest custodians of cryptocurrencies. The bank was granted the license by the New York State Department of Finance Services allowing it to offer best in class trading and lending services. Through its partnership with TUSD, the bank offers custodial services to TUSD users. BitGo also allows users to purchase TUSD within its wallet.
Last is the First Digital Trust under the umbrella of First Digital Trusted Limited. Launched in 2017, the bank allows users to mint and redeem their TUSD tokens. One thing to note is that the ban imposes a maximum and minimum threshold for redemptions and mints.