TrustToken Receives $20 Million In Funding Round

The company which stands behind the TrueUSD stablecoin, TrustToken, has raised around $20 million in the strategic funding round from the investors Andreessen Horowitz, Danhua Capital, GGV Capital, BlockTower Capital and other parties.

As the CEO of TrustToken, Danny An, told the media yesterday:

“The most recent round will support the development of the TrustToken asset tokenization platform, for assets that may include currencies, equities, real estate, and more. The funding will also get allocated toward the expansion of TrustToken’s legal, partnership, product, and engineering departments.”

Despite the rocky start on Binance after their May listing which saw the coin jump 40% and trade at $1.40 before stabilizing again, TrueUSD had some huge problems for a currency that was initially designed to match the dollar.

Analysts at that point blamed the bots for the spike, which were designed to snap newly-listed currencies regardless of the price. However, the team was able to regain control of the price of TrueUSD before long.

In the latest interview, An said that the team has already taken measures to further protect the value of TrueUSD, stating:

“We’ve begun outreach to inform traders to avoid buying any TrueUSD priced far from $1 dollar. Here’s an example of our published content for educating traders. Generally, as awareness for TrueUSD’s redeemability for $1 dollar increases, stability will also increase. It does not make much sense to pay more than $1 for something that is essentially a claim for $1 exactly.”

An currently has big plans for the stablecoin TrueUSD. He believes that the US dollar is not the only currency that TrustToken has its eyes on. According to An:

“We’ve been focused on TrueUSD since its launch three months ago because there has been strong demand for a trustworthy, fiat-backed stablecoin. In just three months, the market cap of TrueUSD (TUSD) has grown to over $60 million. The next step would be tokenizing other currencies such as the Euro.”

Currently, TrueUSD rivals Tether as the only fiat-backed stablecoin on the market. Both of the projects are designed to reserve $1 USD for every token that they issue – and burn a token for every dollar to the investors cashing out.

The main difference between the two, according to An, is the fact that “TrustToken does not hold any of the funds received when TrueUSD gets purchased. TrustToken works with licensed trust companies that already manage billions of dollars to open up an escrow account on behalf of TrueUSD token holders.”