On Wednesday, stablecoin project Trueusd announced that it is leveraging Chainlink Proof of Reserve (POR) technology to provide real-time verification for minting trueusd tokens. The real crypto asset has an offer of over 968 million tokens and is the sixth largest stablecoin by market cap.
Archblock uses Chainlink to verify reserves before minting new TUSD stablecoins
Archblock, the issuer of the US dollar (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 USD-backed stablecoin that uses Proof of Reserve (POR) technology to validate off-chain reserves of TUSD in real time on-chain.
The POR data feed is a smart contract that automatically checks “whether the total supply of TUSD will exceed the total amount of USD held in reserve before any new stablecoin is minted.” According to a statement from Archblock CEO Ryan Christensen, the company is looking to use Chainlink’s POR technology to improve transparency and verifiability.
“As an industry-standard decentralized oracle network, Chainlink helps ensure that TUSD is always backed by offshore FX reserves, reinforcing TUSD’s commitment to trust and transparency,” Christensen said in a statement on Wednesday.
Stablecoins have had a turbulent 12 months, to say the least, with Terra’s cryptocurrency collapsing, HUSD unwinding, and US regulators telling Paxos they can’t issue BUSD anymore. As of February 22, 2023, the real currency (TUSD) is the sixth largest stablecoin by market valuation, with over 968 million tokens in circulation. However, TUSD trade volume is relatively smaller than USDTAnd USDC, BUSD, and DAI.
The stablecoin TUSD is deployed on several blockchains, including Arbitrum, Avalanche, Binance Smart Chain (BSC), BNB Chain, Cronos, Ethereum, Fantom, Polygon, Aurora, Optimism, and Tron. Among the top ten stablecoins by market capitalization, TUSD, along with USDT And Tron’s USDD, are the only three stablecoins that have increased supply over the past 30 days.
“With Chainlink Proof of Reserve, TUSD can provide higher levels of security and trust to its users,” Chainlink co-founder Sergey Nazarov said during the announcement.
What do you think of Archblock leveraging Chainlink’s POR technology? Tell us what you think about it in the comments section below.
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