TRON blockchain welcomes TrueUSD’s yuan-pegged stablecoin

abdelaziz Fathi

The team behind TrueUSD (TUSD) has launched its Chinese yuan-backed stablecoin, which it revealed will run on top of the TRON (TRX) blockchain as an TRC-20 token.

The stablecoin issuer said in a brief blog post Friday that the new token, known as TCNH, is collateralized with yuan stored offshore at a 1:1 ratio. Created to satisfy renminbi-biased crypto enthusiasts, TCNH can provide protection during periods of extreme volatility in the market while improving the risk and return metrics of crypto-investment portfolios.

With China being the world’s second largest economy, its currency has become of great interest and value for crypto enthusiast. However, its unique monetary system features two versions of the national currency, the onshore yuan (CNY) and offshore renminbi (CNH). The latter came about as China began trying to internationalize its currency.

The main difference between the two is that the renminbi can be traded freely on FX markets, while onshore yuan trading is tightly controlled by the Chinese central bank.

Stablecoins have been a core part of the growth story for crypto and DeFi, with US dollar-pegged stablecoins being the de facto reserve currency of crypto thus far. Also, demand for stablecoins in the e-commerce and payment space has been surging as the fiat-backed tokens allow users and merchants to avoid volatility.

Moreover, online retailers and payment gateways benefited from faster, cheaper transactions as compared to credit cards and traditional payment systems. This trend was driven by growing interest in decentralized finance (DeFi) and OTC desks that use the token to settle block trades over-the-counter.

Like other TrueUSD products, TCNH complies with all relevant legal and technical requirements and is audited by world-leading accounting firms. TUSD ranks the fourth-largest USD-pegged stablecoin with a market cap of $755 million, following USDT, USDC, and BUSD.

“We’ve seen that financial markets like Hong Kong are moving towards becoming a global hub for digital currencies, so our products are constantly evolving. We believe that TCNH will further cement our leading position in digital currency infrastructure and contribute to our effort of building a trustworthy and decentralized global payment network,” said Annabel Gan, director of marketing and business development at TUSD.

The launch of TrueUSD’s TCNH comes shortly after Tether, the world’s largest stablecoin provider, added its offshore yuan-pegged stablecoin CNHT to Tron, the blockchain network founded by Justin Sun.

Read this next

Retail FX

Weekly Roundup: John Oliver rips into MetaTrader, Binance to pay $10 billion

Welcome to this week’s roundup, where we delve into the latest developments in the Forex, Fintech, and cryptocurrency markets. Stay ahead of the curve with our comprehensive overview of the week’s most impactful events and trends across these dynamic sectors.

Retail FX

Lark Funding reopens to US traders, MyFundedFX picks cTrader

Canada-based prop trading firm Lark Funding announced it will once again welcome clients from the United States.

Institutional FX

Cboe FX volume falls to lowest level since summer

Cboe’s institutional spot FX platform, known as Cboe Spot, today announced its trading volume for the month ending February 2024, which took a step back after a strong rebound in December.

Retail FX

ThinkMarkets secures lucrative DFSA license in Dubai

Melbourne-based broker ThinkMarkets has secured a license from the Dubai Financial Services Authority (DFSA) after it has already incorporated its new subsidiary in the Dubai International Financial Center (DIFC).

Digital Assets

New Horizen Lays Out Its Vision Of A Modular, Proof Verification Layer For Web3 Networks

Horizen is forging a new path for the future of blockchain with its New Horizen initiative, which is building a modular Proof Verification layer that’s dedicated to verifying cryptographic proofs for any settlement layer, beginning with Ethereum. 

Digital Assets

Karma3 Labs Raises a $4.5M Seed Round Led By Galaxy and IDEO CoLab to Build OpenRank, a Decentralized Reputation Protocol

Using OpenRank, developers and web3 companies can build consumer apps where people can discover, use, fund, read, or buy something on-chain without worrying about getting spammed or scammed.

Digital Assets

Worldcoin down as Elon Musk sues OpenAI CEO Sam Altman

Worldcoin’s (WLD) token dropped following news of a lawsuit against related company OpenAI. The lawsuit was filed by Elon Musk and accused OpenAI and CEO Sam Altman of breach of contract.

Institutional FX

Exegy’s Liquidity Lamp adds intraday data to outperform S&P 500 by 31.8%

Exegy has incorporated intraday signals into its AI-powered iceberg order detection tool, Liquidity Lamp. By adding intraday data to a baseline mean reversion strategy, Exegy’s model outperformed the baseline by 10.5% and the S&P 500 (SPY) by 31.8%, respectively in the out-of-sample testing.

Industry News

Think Elon Musk backed your crypto exchange? ASIC’s latest reveal may shock you

In an absolutely shocking turn of events that nobody could have possibly seen coming, the Australian Securities and Investments Commission (ASIC) has bravely stepped forward to reveal that, yes, those videos of Elon Musk passionately endorsing a cryptocurrency exchange are as fake as a three-dollar bill.