TrustToken Launches AUD-Backed Stablecoin With 3 More to Follow

TrustToken has just launched a new stablecoin and says it has three more coming soon.

Revealing the news exclusively to CoinDesk on Wednesday, the firm said its TrueAUD token is now live and backed 1:1 by the Australian dollar. Cryptocurrency exchanges can "immediately" start listing TrueAUD, and users can purchase and redeem the stablecoin via its app at no cost, it added.

TrueAUD is based on similar legal and technical standards to its dollar-pegged sibling TrueUSD. The firm pledged it will hold collateralized funds in a third-party escrow account and provide regular attestations of the AUD backing by third-party accounting firm Cohen & Co.

Keen to avoid issues with transparency like those that have plagued the most popular stablecoin issuer Tether, which has never provided a full audit of its USD backing, TrustToken last month partnered with accounting firm Armanino to allow traders using its stablecoins to have a “real-time” view of the reserves backing all its tokens.

In March, Tether had conceded that the collateral backing its USDT token may not be 100 percent in actual U.S. dollars.

TrustToken launched a stablecoin pegged to the British pound (TrueGBP) earlier this month, and further offers its U.S. dollar-pegged stablecoin (TrueUSD), which was launched in March 2018. At the time, the firm said it plans to launch more such products linked to the yen as well as other fiat currencies in the future.

Coming soon, on a similar basis, are two other tokens backed by Canadian dollars and Hong Kong dollars (TrueCAD and TrueHKD, respectively) that will launch in Q2. A euro version (TrueEuro) is due in Q3.

TrustToken is backed by Andreessen Horowitz's cryptocurrency fund A16z Crypto, having raised $20 million in a strategic token sale last June. The firm has adopted the mission to act as a "bridge between blockchains and $256 trillion worth of real-world assets."

Australian dollars image via Shutterstock