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Tether (USDT), after USDC (USDC) and Dai (DAI), the fourth largest stablecoin TrueUSD (TUSD) made a strategic move regarding transparency. The Hong Kong-based 1:1 US dollar-indexed altcoin project has agreed with the tenth largest accounting firm in Hong Kong to provide attestation services for its fiat reserves.
TrueUSD’s Significant Transparency Initiative
With a market value of 2.41 billion dollars, ranking 37th among the top 50 altcoins, TrueUSD has taken an important step regarding the most controversial aspect of stablecoins, the fiat reserves. In this direction, TrueUSD has made an agreement with the accounting firm MooreHK to provide attestation services for its fiat reserves.
MooreHK, the tenth largest accounting firm in Hong Kong, will start providing daily attestation services to TUSD from the end of January 2024.
Stablecoins and Transparency
Stablecoins are digital assets designed to minimize the volatility of cryptocurrencies. They are usually pegged to a fiat currency (e.g., US dollar, Euro, or other traditional currencies) or a certain value storage medium (like gold). Having this stable value helps users avoid the high value movements in the volatile cryptocurrency market.
Transparency is of great importance in the world of cryptocurrency, especially in stablecoin projects. This transparency includes access to clear information about the project’s management, reserve policies, methods of storing funds, and other critical factors.
The most important transparency issue for a stablecoin is reserve transparency. The value of a stablecoin is often based on assets held in a reserve. A transparent stablecoin project clearly shows what assets are included in this reserve and how they are stored. TrueUSD’s move corresponds to these two points. By providing full transparency in reserves through the partnership with MooreHK, TrueUSD will build trust and attract market participants looking for transparency in stablecoins.
