TrustToken Launches Stablecoin Backed by Canadian Dollar
TrustToken has released its latest stablecoin, TrueCAD, tied to the Canadian dollar.
TrustToken has also created a number of other stablecoins, such as TrueUSD (U.S. dollars), TrueGBP (British pounds) and TrueAUD (Australian dollars); each of these backed at a purported 1:1 ratio with their associated fiat currencies.
For now, holders can use these four stablecoins on the TrustToken app, and expect them to be listed on exchanges “over the coming weeks and months.” TrustToken further notes that some of their products are already being traded on top exchanges such as Binance, Huobi, and OKEx.
Stablecoins are digital tokens that are backed by either a separate asset like a mineral or currency, or are stabilized by an algorithm. Moreover, stablecoins may take a number of different forms, and do not even necessarily require backing from a tangible asset. TrustToken alludes to this fact 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.”
TrueCAD and TrueAUD are two of four new stablecoins pegged to national currencies that TrueToken announced would release in 2019. Further on the agenda for the year are TrueEUR and TrueHKD, for euro and Hong Kong dollars, respectively.
Lawyers recently confirmed in court documents that the Tether stablecoin USDT is not backed 1:1 with U.S. dollars (its reserve asset). In fact, Zoe Phillips of law firm Morgan Lewis said that only three-quarters of Tether reserves had USD backing.