On Wednesday, the stablecoin project Trueusd announced that it is leveraging Chainlink Proof of Reserve (POR) technology to provide real-time verification for the minting of trueusd tokens. The trueusd crypto asset has a circulating supply of over 968 million tokens and is the sixth-largest stablecoin by market capitalization.
Archblock Uses Chainlink to Verify Reserves Before Minting New TUSD Stablecoins
Archblock, the issuer of the trueusd (TUSD) stablecoin, has announced that it is using Chainlink to verify reserves before minting new TUSD stablecoins. According to the project, it is the first U.S. dollar-backed stablecoin to use proof-of-reserves (POR) technology for real-time on-chain verification of TUSD’s offchain reserves.
The POR data feed is a smart contract that automatically checks “whether the total supply of TUSD would exceed the total amount of U.S. dollars held in reserve before any new stablecoin is minted.” According to a statement by Ryan Christensen, the CEO of Archblock, the firm is looking forward to using Chainlink’s POR technology to improve transparency and verifiability.
“As the industry-standard decentralized oracle network, Chainlink helps ensure that TUSD is always collateralized by offchain fiat reserves, furthering TUSD’s commitment to trust and transparency,” Christensen said in a statement on Wednesday.
Stablecoins have had a tumultuous past 12 months, to say the least, with Terra’s UST imploding, HUSD depegging, and U.S. regulators telling Paxos that they cannot issue BUSD any longer. As of Feb. 22, 2023, trueusd (TUSD) is the sixth-largest stablecoin by market valuation, with over 968 million tokens in circulation. However, TUSD’s trade volume is comparatively smaller than that of USDT, USDC, BUSD, and DAI.
The TUSD stablecoin is deployed on several blockchains, including Arbitrum, Avalanche, Binance Smart Chain (BSC), BNB Chain, Cronos, Ethereum, Fantom, Polygon, Aurora, Optimism, and Tron. Out of the top ten stablecoins by market capitalization, TUSD, along with USDT and Tron’s USDD, are the only three stablecoins that have increased their supplies over the last 30 days.
“With Chainlink Proof of Reserve, TUSD can provide greater levels of assurance and confidence to its users,” said Chainlink co-founder Sergey Nazarov during the announcement.