TrueUSD, a relatively obscure stablecoin that’s been gaining in popularity since signing a lucrative deal with crypto exchange Binance Holdings Ltd. earlier this year, will be fully controlled by its owners after a management deal ended.
(Bloomberg) — TrueUSD, a relatively obscure stablecoin that’s been gaining in popularity since signing a lucrative deal with crypto exchange Binance Holdings Ltd. earlier this year, will be fully controlled by its owners after a management deal ended.
The $2.8 billion stablecoin — also known by its ticker TUSD — will be managed as of Friday by Techteryx Ltd., according to a series of posts on the project’s Twitter account. While Techteryx bought the rights to TUSD from stablecoin operator Archblock in late 2020, it had continued to employ Archblock to run the project on its behalf until now.
“Techteryx will assume full management of all offshore operations and services related to TUSD, including minting and redemptions,” the Twitter account said on Friday. The company will also take over activities relating to customer onboarding and compliance, the $2.8 billion reserve backing TrueUSD and supervision of all banking and fiduciary relationships, it added.
Incorporated in the British Virgin Islands, Techteryx operates out of offices in Singapore and Hong Kong, a representative for the firm told Bloomberg News in April, without specifying the names of any of its executives or owners.
Stablecoins like TrueUSD are digital tokens designed to keep a one-to-one value with a less volatile asset like the dollar, typically by holding equal reserves of cash and cash-equivalent assets as collateral. They’re commonly used by traders as a way of transferring funds between exchanges and as a safe haven from price swings, making them some of crypto’s most-traded tokens.
Read more: Little-Known Stablecoin at Center of Binance Reclamation Efforts
TrueUSD’s circulation has steadily risen in 2023 after becoming the only stablecoin that doesn’t carry the Binance brand where traders don’t have to pay a fee when swapping between cryptocurrencies on the world’s largest exchange.
Archblock declined to comment on the announcement. A representative for Techteryx didn’t immediately respond to a request for comment.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.