Archblock, the issuer of TrueUSD stablecoin, said it will use Chainlink's proof-of-reserves system to let users verify its reserves are fully collateralized on the blockchain via an automated data feed.
"We're excited to use Chainlink's Proof of Reserve to enhance the transparency and verifiability of our stablecoin," said Ryan Christensen, CEO of Archblock. "As the industry-standard decentralized oracle network, Chainlink will help ensure that TUSD is always collateralized by off-chain fiat reserves."
TUSD is backed by US dollars and is the sixth-largest stablecoin, with a market capitalization of $966 million. Integrating with Chainlink's proof of reserve (PoR) system will allow TUSD holders to verify on-chain that its stablecoin reserves are fully collateralized through automated off-chain data feeds.
The Network Firm (TNF), an independent accounting firm, will aggregate the oracle data for TUSD. This firm will collect real-time data on all reserve holdings (US dollars held at financial institutions). This will be provided on-chain through Chainlink's decentralized oracle network, Archblock stated in a note shared with The Block
Using TNF's data feed, The TUSD smart contract will automatically check whether the total supply of TUSD exceeds the total amount of US dollars held in reserve before any new stablecoins are minted.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.