Bitaigen Research In this article we meticulously dissect the issuance mechanisms, custodial models, and risk characteristics of TUSD and USDT, helping investors make informed choices when selecting a dollar‑pegged stablecoin. By comparing contract workflows, third‑party audits, and other key processes, you will gain a clearer understanding of the fundamental differences and appropriate use‑cases for each, with practical references provided in the sections that follow.
When TUSD and USDT are mentioned, many investors are already familiar with them. These two digital assets share many similarities, which is why they are often compared side by side.
First, both TUSD and USDT are stablecoins issued by centralized entities and are each claimed to be backed 1:1 by U.S. dollars held in bank reserves.
Faced with such stablecoins, some investors may not know how to choose without a full understanding. Before making a selection, it is essential to clarify the distinctions between TUSD and USDT. Below, the editorial team presents a comprehensive overview of the stablecoin TUSD.
What are the differences between TUSD and USDT?
- Both are issued by centralized institutions, anchored to the U.S. dollar on a 1:1 basis, and claim to hold equivalent dollar reserves in banks.
- The TUSD project team states that it does not directly handle the dollars in the custodial accounts; instead, it partners with multiple banks so that institutional or retail deposits flow straight into legally protected custodial accounts, ensuring fund safety.
- TUSD operates via smart contracts: once a dollar deposit is confirmed, an equivalent amount of TUSD is minted; when dollars are redeemed, the corresponding TUSD tokens are automatically burned, dynamically maintaining the 1:1 peg.
- TUSD engaged the third‑party firm Cohn & Co to independently audit the custodial account balance as of March 1 and publish a report. The audit showed a issuance‑to‑balance ratio of 1.0033.
- The custodial account balance reported in the audit was $4,777,750 (USD), while the total supply of TUSD on the smart‑contract address was $4,761,925.
Comprehensive introduction to the stablecoin TUSD
TrueUSD (TUSD) is a dollar‑backed token designed to give holders a legally protected USD asset, with 1 USD = 1 TrueUSD token. TrueUSD offers consumers and businesses a reliable transaction tool, allowing the U.S. dollar to be used as a medium of exchange and store of value.
TrueUSD is similar to USDT and belongs to the “stablecoin” category. It was launched by TrustToken, a company backed by the Stanford‑affiliated venture fund, and emphasizes transparency and credibility. By establishing a network of partnerships with banks and trust institutions, TrueUSD ensures that its tokens remain tightly anchored to the U.S. dollar.
Unlike Tether, which has faced scrutiny over audit disputes, TrueUSD undergoes regular third‑party audits that provide legal reassurance to holders, and it strengthens compliance through enhanced KYC (Know‑Your‑Customer) and AML (Anti‑Money‑Laundering) procedures. The platform may even review individual transactions to mitigate risk. While these audit and compliance measures improve transparency, they also introduce additional operational costs.
Before TUSD entered the market, USDT was the dominant stablecoin for trading. However, USDT’s mechanism has been perceived as relatively opaque; it has been alleged that newly minted USDT was used to purchase large amounts of BTC, inflating overall market prices. During bullish periods, users often had to buy USDT at a premium to enter the market, while in bearish phases they were forced to redeem at a discount, causing USDT’s price to deviate by up to ~20 % at times. Moreover, USDT’s redemption process can be lengthy, and its price volatility has, on occasion, strayed from the strict definition of a “stablecoin.” To address these shortcomings, TUSD emerged as a more transparent and stable alternative.
It is important to note that investing in stablecoins is not risk‑free. Stablecoins can still encounter trust crises that trigger price drops and affect returns. Therefore, investors should fully understand the associated risks and conduct a rational assessment before committing capital.
Note: Crypto gains, including those from stablecoin transactions, may be subject to taxation in your local jurisdiction. Be sure to consult a tax professional for guidance.
For U.S. residents: Use Binance.US rather than the global Binance platform when accessing fiat on‑ramps. Deposits and withdrawals can be conducted via USD, SEPA, or SWIFT where applicable.
That concludes the complete coverage of “What is the difference between TUSD and USDT? A comprehensive guide to the stablecoin TUSD.” For more material on the distinctions between TUSD and USDT, please follow additional articles from Bitaigen (比特根).
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