Through Avalanche, users will be able to send and receive TUSD for a fraction of a cent with sub-second finality
Avalanche announced yesterday the launch of its first USD stablecoin, TrueUSD (TUSD) – the first and only fully-backed stablecoin to be independently attested on-chain in real-time. It is one of the top five fiat-backed stablecoins by market cap and will launch natively on Avalanche in the first quarter of 2021.
Avalanche, which launched its mainnet on 21 September this year, is an open-source platform for launching decentralised finance (DeFi) applications and enterprise blockchain deployments. It has more than 650 block-producing validators participating in consensus on its network, as well as 2,500 delegators taking part in staking. Together, they have accounted for more than $1.3 billion in Avalanche’s native token, AVAX, being staked to secure the network at peak, making Avalanche the most decentralised layer 1 blockchain platform.
TUSD, which is built by TrustToken, is one of many TrueCurrencies collectively generating billions of dollars in monthly volume through trading on more than 100 exchanges and OTC desks across over 150 countries. TrustToken’s other offerings include TGBP, TCAD, TAUD and THKD, which are set to follow TUSD onto Avalanche.
CEO of TrustToken, Rafael Cosman, said, “Bringing TUSD to Avalanche means putting our industry’s most transparent medium of exchange in the hands of even more builders. TUSD is the first TrustToken product of many coming to Avalanche. We’re thrilled to see what Avalanche’s fantastic developer community will create with TrueCurrencies as building blocks.”
Avalanche was chosen partly for its speed – instead of waiting a long time for block confirmations, stablecoins will be able to move like cash for the first time. Users will be able to send and receive TUSD for a fraction of a cent with sub-second finality. The stablecoin will also be suitable for high frequency trading, arbitrage and other low latency use cases as it offers traders the quickest way to move fiat-equivalent currencies in and out of exchanges.
President of Ava Labs, John Wu, commented, “U.S. Dollar liquidity is vital to thriving DeFi ecosystems, and we’re excited to bring one of the most trusted and widely-used stablecoins onto Avalanche. TrueUSD on Avalanche will be a vital component of a new wave of stablecoin applications and products that are only possible with near-instant finality.”
It is hoped that the addition of a reputable and popular stablecoin will represent a big step forward in the utility of stablecoins in general, as well as expanding liquidity across Avalanche’s DeFi ecosystem.