Per the Independent Accountants’ Report prepared by certified public accounting firm Cohen & Company, as of March 31, 2019, the U.S. dollar balance held in escrow accounts was $199,063,885, while the balance of TUSD tokens issued and being in circulation was 198,982,291 TUSD.
The issued and outstanding TUSD tokens as of the date purportedly do not exceed the balance of the aforementioned escrow accounts. “The supply of TUSD tokens can be reconciled to transactions within the escrow accounts including escrow deposits awaiting token minting and tokens which have been burned and are awaiting escrow disbursement,” the report further explains.
Last month, TrueUSD announced a new partnership with accounting firm Armanino, wherein a dashboard developed by Armanino purportedly enables traders to monitor TrueUSD token balances and collateralized funds. “Armanino connects directly to third-party escrow accounts holding the U.S. dollars that collateralize TrueUSD tokens, and runs their own Ethereum nodes to ensure accurate TUSD token supply,” the announcement detailed.
Some stablecoins — cryptocurrencies pegged to fiat currencies, algorithms, or physical assets in a bid to minimize volatility — have previously been suspected of not having the proper reserves to back them. In March, developers behind stablecoin Tether (USDT) drew scrutiny after social media users noticed they had removed previous claims that the altcoin was fully backed by U.S. dollars.
A new update stressed that “every Tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities.” That led some community members to take issue with backing by anything other than U.S. dollars, which they suggested compromises the entire coin’s legitimacy.