TRON blockchain welcomes TrueUSD’s yuan-pegged stablecoin
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.
