TrustToken Receives $20 Million in Funding Round

TrustToken, the company behind the TrueUSD stablecoin, has raised $20 million in a strategic funding round from Andreessen Horowitz, BlockTower Capital, Danhua Capital, GGV Capital, and other parties.
“The most recent round will support the development of the TrustToken asset tokenization platform, for assets that may include currencies, equities, real estate, and more. The funding will also get allocated toward the expansion of TrustToken’s legal, partnership, product, and engineering departments.”

TrueUSD got off to a rocky start on Binance after their May listing which saw the value of the stablecoin jump 40% to trade at $1.40 before stabilizing again, obviously a huge problem for a currency designed to match the dollar.

An stated that trading bots were to blame for the spike, designed to snap up newly-listed currencies regardless of price – because they had not been programmed to ignore the stablecoin they accumulated in bulk even as the price began to climb, despite the lack of incentive to do so. The team was able to regain control of the price before long, although there was a delay in the launch as the issue was investigated.

An told CCN that the team has taken measures to further protect the currency value:

“We’ve begun outreach to inform traders to avoid buying any TrueUSD priced far from $1 dollar. Here’s an example of our published content for educating traders. Generally, as awareness for TrueUSD’s redeemability for $1 dollar increases, stability will also increase. It does not make much sense to pay more than $1 for something that is essentially a claim for $1 exactly.”

With things under control, An is describing big plans for the stablecoin, saying that the US dollar is not the only currency TrustToken have their eyes on. “We’ve been focused on TrueUSD since its launch three months ago because there has been strong demand for a trustworthy, fiat-backed stablecoin. In just three months, the market cap of TrueUSD (TUSD) has grown to over $60 million. The next step would be tokenizing other currencies such as the Euro.”

TrueUSD rivals Tether as the only other fiat-backed stablecoin on the market. Both projects claim to reserve $1 USD for every token they issue, and to burn a token for every dollar they return to investors cashing out…

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