In a bid to secure the minting and transparency of stablecoins, Chainlink, an industry-standard web3 service provider has partnered with TrueUSD, a popular transparent stablecoin. The web3 service provider announced the development via its verified Twitter page on Wednesday. Occasioned by this partnership, the stablecoin project will now leverage on Chainlink’s proof of Reserves technology to further enhance the safety and transparency of its stablecoins minting.
With this, TrueUSD (TUSD) has now become the first stablecoin project to programmatically control minting with real-time on-chain verification of off-chain reserves. By virtue of this, it has further taken a step forward in the bid to ensuring decentralization, transparency, and independent verification.
It is noteworthy that the reserve data of TrueUSD is powered by The Network Firm LLP(“TNF”). This TNF runs as a United States independent industry-specialized accounting firm. It usually aggregate all reserves data (i.e US dollars held at financial institutions) in real-time. Afterward, TNF serves the information on-chain through Chainlink decentralized oracle network.
TrueUSD to monitor the supply of its stablecoins
Now, TrueUSD aims to harness the “proof of reserve” data feed through its smart contract. With this, it will be able to verify if the total supply of its stablecoins will surpass the aggregate amount of US dollars in reserve before minting a new stablecoin. Through this efforts, it’s team wants to ensure the stability of TUSD and also guarantee the redeemability of underlying dollars for customers and users.
The CEO of Archblock, the issuer of TrueUSD stablecoin, Ryan Christensen has reacted to the partnership. Christensen said the firm looks forward to using the PoR of Chainlink to enhance the transparency and verification of stablecoins. The CEO added that through Chainlink’s support, TUSD will remain collateralized by off-chain fiat reserves. Also, Christensen is optimistic that the integration will foster the confidence of users about the reserves backing TUSD.
Additionally, the co-founder of Chainlink, Sergey Nazarov also reacted to the partnership. He affirmed his firm’s commitment to backing TUSD’s efforts of introducing new layers of transparency, risk management to stablecoin minting. According to Nazarov, TrueUSD can now offer greater levels of assurance and confidence to its users through Chainlink PoR.
Meanwhile, this development comes just a few months after TrueUSD launched TCNH stablecoin. Worthy of note that the stablecoin was pegged to the offshore Chinese Yuan. According to findings, the asset manifested as part of the commitment towards bridging the gap between crypto and real world.