Tether's USDT and TrueUSD (TUSD) are both USD-pegged stablecoins, but they diverge in transparency, governance, and market adoption. This comparison explores their histories, mechanisms, risks, and use cases to help you make informed decisions.
History and Background
TrueUSD (TUSD)
- Launched: 2018 by TrustToken.
- Acquisition: Sold to Techteryx (a Chinese conglomerate) in late 2020—ownership details remain undisclosed.
- Transparency: Initially provided real-time reserve attestations via Armanino’s Trust Explorer. Discontinued after Armanino exited crypto audits in 2022.
Notable Events:
- Became legal tender in Dominica (2023).
- Binance minted $50M TUSD (February 2023) amid BUSD regulatory issues.
Tether (USDT)
- Launched: 2014 by Tether Holdings Ltd.
Controversies:
- Paid $60M+ in fines (NYAG, CTFC) for misrepresenting reserves.
- Faces scrutiny over undisclosed commercial paper holdings and Bitcoin price manipulation allegations.
- Market Dominance: Largest stablecoin ($60B+ circulation).
How They Work
Collateralization
- Both claim 1:1 USD backing, though reserves include cash equivalents (e.g., commercial paper).
- TUSD: Uses Chainlink-powered smart contracts for minting transparency.
- USDT: No full audit; relies on periodic attestations.
Reserve Risks
- USDT: 49% of reserves held in "U.S. Treasury Bills" (2023 Q1 attestation).
- TUSD: 1.5B TUSDB uncollateralized (per Armanino’s final report).
Key Differences
| Feature | TUSD | USDT |
|-----------------------|-------------------------------|-------------------------------|
| Transparency | Proof-of-reserves via Chainlink | No public audit |
| Governance | Techteryx (opaque) | Tether Holdings Ltd. |
| Market Cap | $967M (Feb 2023) | $60B+ |
| Primary Users | Institutional (e.g., Binance) | Retail/DeFi |
Risks
- Losing Peg: Both vulnerable to bank runs if reserves are insufficient.
Regulatory Scrutiny:
- USDT: Ongoing legal challenges.
- TUSD: Shadow ties to Justin Sun (TRON) raise compliance concerns.
FAQs
1. Which is safer: TUSD or USDT?
TUSD markets itself as "fully transparent," but its opaque ownership offsets this advantage. USDT’s size offers liquidity but higher systemic risk.
2. Where can I buy TUSD?
Binance, KuCoin, and HTX—though liquidity trails USDT.
3. Why did Binance mint $50M TUSD?
Likely to diversify stablecoin holdings after BUSD regulatory pressure.
4. Are TUSD’s reserves audited?
No. It uses attestations from The Network Firm LLP (not equivalent to an audit).
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Future Outlook
- USDT: Faces erosion from rivals like USDC but remains dominant.
- TUSD: Potential growth if Binance adopts it further, but governance opacity persists.
Final Thought: While TUSD offers technical transparency, USDT’s liquidity makes it indispensable—despite its risks. Choose based on your risk tolerance and use case.
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