what is tusd
What Is TrueUSD?
TrueUSD (TUSD) is a stablecoin pegged 1:1 to the US dollar, designed to keep its on-chain value as close as possible to $1. Stablecoins are a type of cryptocurrency with minimal price volatility, tracking a fiat currency target (in this case, the US dollar). They are widely used for trading pairs, hedging against market volatility, and payment settlements.
TrueUSD maintains its peg by holding US dollar reserves in bank and trust accounts, undergoing regular audits and complying with regulatory requirements. After completing KYC (Know Your Customer, i.e., identity verification) and AML (Anti-Money Laundering) checks, users can mint or redeem tokens at a 1:1 ratio, ensuring the circulating supply always matches the real USD reserves.
What Are the Current Price, Market Cap, and Circulating Supply of TrueUSD (TUSD)?
As of January 5, 2026 (based on provided reference data), TUSD is priced at approximately $0.9984, with a circulating supply of 494,515,083 tokens and a total supply of 495,202,000 tokens. The market capitalization stands at about $494,409,676.8, making up roughly 0.014% of the overall crypto market. The 24-hour trading volume is around $2,162,543.40. In terms of price movement: a 1-hour decline of about -0.026%, a 24-hour decline of -0.010%, a 7-day drop of -0.080%, and a 30-day increase of 0.110%.
Market capitalization is calculated by multiplying the token price by the circulating supply and serves as an indicator of the token's total market size. Circulating supply represents the number of tokens currently available for trading. Stablecoin prices usually fluctuate slightly around $1, mainly influenced by market supply-demand dynamics and the minting/redemption mechanism.
Who Created TrueUSD (TUSD) and When?
TrueUSD was launched by the TrustToken team on March 6, 2018. Its primary goal is to offer a transparent and compliant US dollar stablecoin, utilizing partnerships with banks and trust companies to custody reserves. Regular audits and a legal framework provide holders with regulatory assurance and legal protection.
The project places significant emphasis on KYC and AML processes to mitigate financial and compliance risks. Its commitment to transparency differentiates it from other stablecoins in the market—offering more frequent audits and public attestations.
How Does TrueUSD (TUSD) Work?
The core of TrueUSD lies in its minting and redemption mechanism. Minting occurs when a user completes KYC and deposits USD into a designated escrow account to receive an equivalent amount of TUSD tokens. Redemption involves returning TUSD to reclaim the equivalent USD. This process ensures that the token supply expands or contracts in sync with real-dollar inflows and outflows, maintaining full reserve backing.
Two key factors help maintain the peg: reserve audits/custody (ensuring sufficient USD is held in accounts) and market arbitrage. If TUSD trades below $1, arbitrageurs can buy TUSD cheaply and redeem it for $1, pushing the price back up. If it trades above $1, users can mint more TUSD to sell into the market, alleviating the premium.
On the compliance side, KYC verifies user identities while AML screens for suspicious activity to prevent illicit use. Compliance audits and legal frameworks enhance transparency but also introduce additional time and cost.
What Can TrueUSD (TUSD) Be Used For?
TUSD is commonly used in three main scenarios:
- Trading Pairs & Hedging: In volatile crypto markets, traders use TUSD as a safe haven to temporarily “park” funds in a dollar-equivalent asset during market swings.
- Payments & Settlements: For cross-border transfers, TUSD enables fast on-chain value movement that can be redeemed for USD when needed—reducing settlement times.
- On-Chain Finance: Certain decentralized applications (dApps) support stablecoins for lending or collateralization. As a USD-pegged asset, TUSD helps manage positions and liquidity within DeFi protocols.
What Are the Main Risks and Regulatory Considerations for TrueUSD (TUSD)?
Stablecoins still carry risks. Depegging risk refers to the possibility that TUSD’s price may temporarily diverge from $1 during extreme market conditions or illiquidity events. Issuer and custody risk involves potential operational or compliance issues at partner banks or trusts. Regulatory risks stem from KYC/AML procedures, which could result in account freezes, blacklisting, or transaction restrictions.
On-chain technical risks include smart contract vulnerabilities or network congestion. Custody risk arises if assets are stored on exchanges or hot wallets—exposing users to platform security breaches or private key leaks; cold wallets are safer but require careful backup of seed phrases and vigilance against phishing attempts.
How Can I Buy and Safely Store TrueUSD (TUSD) on Gate?
Step 1: Register a Gate account and complete KYC. Submit genuine identity documents for compliance and withdrawal privileges.
Step 2: Fund your account. You can deposit fiat through supported channels or transfer crypto from another wallet, then swap into TUSD using available trading pairs.
Step 3: Select a trading pair and place an order. Search for “TUSD” in spot trading, choose your preferred pair, then place either a market order (for instant execution at current prices) or a limit order (to set your desired buy/sell price).
Step 4: Asset storage & withdrawals. For short-term trading, you may keep TUSD on Gate; for long-term holding, withdraw to a self-custody wallet. Hot wallets are convenient but less secure; cold wallets offer stronger security but require diligent seed phrase backup.
Step 5: Enable security settings. Set up two-factor authentication (2FA), withdrawal whitelist addresses, beware of phishing sites and fake support agents, and regularly review login/device authorization records.
How Is TrueUSD (TUSD) Different From Tether (USDT)?
Both are US dollar stablecoins but differ in transparency and compliance approach. TrueUSD emphasizes regular audits and trust-based custody with mandatory KYC/AML during minting/redemption; USDT prioritizes broad market reach and liquidity, but its reserve disclosures and audit practices have been industry discussion points for years.
On usage, USDT typically offers more trading pairs and higher liquidity—ideal for high-frequency trading; TrueUSD focuses on transparency and compliance, appealing to institutions or users requiring audit proofs and legal assurance. Both face regulatory changes and custody risks; choose based on your compliance needs and liquidity preferences.
Summary: Key Takeaways on TrueUSD (TUSD)
TrueUSD (TUSD) is a stablecoin pegged 1:1 to the US dollar, maintained through trust-based custody and regular audits with KYC/AML compliance. It serves as a tool for hedging trades, pricing assets, and cross-border settlement—relying on mint/redeem mechanisms and market arbitrage to hold its peg. Users should pay close attention to issuer/custodian stability, evolving regulations, depegging risk, and on-chain technical threats. To operate safely, complete KYC on Gate, follow proper trading/security protocols, use self-custody wallets for long-term holding, securely back up private keys, and balance needs for transparency, liquidity, and compliance.
FAQ
TUSD vs USDT: Which Should I Choose?
TUSD and USDT are both US dollar stablecoins but have different issuers. TUSD is issued by TrustToken with independent audits—prioritizing transparency; USDT is issued by Tether with greater liquidity and more trading pairs. If audit transparency is your top priority, TUSD is a solid choice; if you need maximum trading convenience, USDT’s liquidity is unmatched. Both are available for trading on Gate.
Are There Differences Between TUSD on Different Blockchains?
TUSD is deployed across multiple blockchains such as Ethereum and Polygon. Each represents $1 per token; however, transaction fees vary—Ethereum gas fees are higher while Polygon/L2 networks offer lower costs. Choose your network based on transaction frequency and cost considerations; for small-value transfers, Polygon is recommended.
Is My TUSD Safe on Gate?
Holding TUSD on a licensed exchange like Gate is relatively safe—most assets are stored in cold wallets with regular security audits. For long-term holdings, it’s best to transfer to a self-custody wallet (such as MetaMask) for full control. Wherever you store it, remember that TUSD is pegged to USD only—it does not accrue interest and mainly serves as a store of value for transactions.
Can TUSD’s Supply Exceed Real Dollar Reserves?
TUSD uses a strict 1:1 reserve model—every TUSD issued must be backed by one actual USD deposit. Unlike some stablecoins, TrustToken regularly publishes third-party audit reports verifying full reserve coverage. This design minimizes over-issuance risk; you can verify the latest reserves via official audit disclosures.
What Should I Know Before Transferring TUSD to Gate From Another Platform?
First confirm both you and Gate support the same blockchain network (e.g., Ethereum or Polygon). Copy Gate’s official deposit address; when withdrawing from another platform, select the matching network for transfer. Test with a small amount first to ensure successful delivery before sending larger sums. Withdrawal fees are charged by the originating platform; Gate deposits are usually free.
TrueUSD (TUSD) Key Terms
- Stablecoin: A crypto asset pegged to fiat currencies like the US dollar to reduce volatility risk.
- Proof of Reserves: Mechanism where stablecoin issuers publicly verify their USD holdings through independent audits.
- On-chain Transfer: Moving digital assets directly on blockchain networks without intermediaries.
- ERC-20 Standard: The technical standard defining basic functionality and interactions for Ethereum-based tokens.
- Minting & Burning: Mechanisms where tokens are created by depositing USD or destroyed to decrease supply based on redemptions.
Further Reading & References for TrueUSD (TUSD)
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Official Site / Whitepaper:
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Developer Docs:
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Industry Media / Research:
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