TrustToken Launches A New Stablecoin Backed by Canadian Dollar
TrustToken adds another token to its line of fiat-backed stablecoins with the release of TrueCAD on May 1. The latest stablecoin will be backed to the Canadian dollar.
TrustToken has several stablecoins in its kitty including TrueUSD (U.S. dollars), TrueGBP (British pounds) and TrueAUD (Australian dollar). Each of the mentioned tokens are backed at a purported 1:1 ratio with their associated fiat currencies.
Currently, these four stablecoins could be used on the TrustToken app, however, the firm plans to list them on exchanges “over the coming weeks and months.” Further, TrustToken notes that some of their products are already being traded on top exchanges such as Binance, Huobi, and OKEx.
Basically, Stablecoins are digital tokens backed by either a separate asset such as currency or a mineral and are stabilized by an algorithm. Stablecoin can purportedly take a number of different forms, and do not even necessarily require backing from a tangible asset. TrustToken elaborates over this in their statement about TrueCAD:
“We wanted a simple stablecoin, without the need to trust some company’s hidden bank account or special algorithm. […] Our open source smart contracts ensure a 1:1 parity between TrueCAD and CAD in the accounts.”
Planned to be released in 2019, TrueCAD and TrueAUD are two of the four new stablecoins pegged to national currencies. Further the firm plans to release TrueEUR and TrueHKD, for euro and Hong Kong dollars, respectively.
In other Stablecoin news, Lawyers have recently confirmed in court documents that the Tether stablecoin USDT is not backed 1:1 with U.S. dollars (its reserve asset). Notably, Zoe Phillips of law firm Morgan Lewis stated that only three-quarters of Tether reserves had USD backing.
Image Source – TrustToken Medium