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With the sudden rise of crypto regulations surrounding stablecoins, TrueUSD (TUSD) stablecoin’s issuer, Archblock, announced that it will leverage Chainlink’s proof-of-reserves mechanism to enable users to confirm that its reserves are completely collateralized on the blockchain via an automated data feed.
TrueUSD To Use Chainlink’s PoR
The Network Firm LLP (“TNF”), an independent and industry-specialized accounting firm in the United States, is in charge of aggregating the reserve data for TUSD. TNF is able to do real-time data aggregation of all reserves (US Dollars stored at financial institutions) and serves this information on-chain via Chainlink’s industry-leading decentralized oracle network.
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According to the official announcement, before minting any additional stablecoins, the TUSD smart contract would use this ‘Proof of Reserve’ data stream to perform an automatic check to see if the entire quantity of TUSD in circulation would be greater than the total amount of US dollars kept in reserve. This automatic workflow is supported by open and independent data feeds, indicating TUSD’s dedication to maintaining both the stability of the TUSD system as well as the redeemability of underlying dollars for customers and users. This automated workflow is transparent in the smart contract code.
While speaking on the new partnership with Chainlink, Archblock’s CEO Ryan Christensen was quoted as saying:
We’re excited to use Chainlink’s Proof of Reserve to enhance the transparency and verifiability of our stablecoin,”
Use Of Mint Lock Verification
The statement by Archblock added that the implementation of the “mint lock control” makes TUSD the first stablecoin to programmatically manage minting with real-time on-chain verification of off-chain reserves. TUSD is presently operational on leading blockchains like Arbitrum, Avalanche, Binance Chain, BNB Chain, Cronos, Ethereum, Fantom and Polygon among others. At the time of writing, TUSD’s price remained pegged to its one-dollar value at a $967 million market cap.
Investors have become increasingly skeptical about the collateral backing stablecoins and cryptocurrencies, and even customer assets on exchanges, which has forced companies to be more transparent with “Proof of Reserves” reports and other assurances. The new setup comes at a time when U.S. regulators are ramping up their crackdown on firms and projects utilizing cryptocurrencies in the country.
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