Tether (USDT) vs. TrueUSD (TUSD): Comparison of Two Leading Stablecoins

Bittime - Tether (USDT) and TrueUSD ( TUSD ) are two of the most popular stablecoins in the crypto world. Both are trying to maintain a 1:1 exchange rate against the US dollar (USD). 

However, there are several fundamental differences in terms of supporting mechanisms, transparency and regulations that investors need to consider.

Get to know USDT and TUSD

USDT, issued by Tether Limited, operates on various blockchains such as Ethereum and Tron. It claims to be backed 1:1 by traditional fiat currency held in reserve, although its transparency and reserves have been a matter of concern. 

USDT is widely used in crypto trading due to its liquidity and wide acceptance on exchanges.

On the other hand, TUSD, created by TrustToken, is known for its transparency and regulatory compliance. TrueUSD is backed by US dollars held in escrow accounts and is regularly audited by third-party companies to ensure its support. 

The goal is to provide users with a trusted stablecoin option for transactions and hedging against crypto market volatility.

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Supporting Mechanisms

• Tether (USDT):   The exact composition of reserve assets backing USDT is not yet fully transparent. Tether Limited, as the issuer of USDT, claims that USDT is backed by cash equivalent to US dollars, short-term US government bonds and other assets. However, the detailed composition of these assets has never been independently audited.
• TrueUSD (TUSD):   TrueUSD is backed by a basket of assets held in escrow accounts by top financial institutions in the United States. These assets are regularly audited by an independent audit firm. The asset types that support TUSD are publicly reported and accessible on the TrueUSD website.

Transparency

• Tether (USDT):   Tether Limited is often criticized for its lack of transparency regarding the reserves backing USDT. This raises concerns about the potential instability of the USDT value if the reserves held are insufficient.
• TrueUSD (TUSD):   TrueUSD offers better transparency. The composition of assets supporting TUSD is regularly reported and audited by an independent third party.

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Regulations

• Tether (USDT):   The regulatory status of USDT in the United States remains unclear. Tether Limited has not registered as a Money Services Business (MSB) with FinCEN, the federal agency that regulates financial activities.
• TrueUSD (TUSD):   TrueUSD is issued by companies registered as MSBs with FinCEN. This provides a higher level of regulatory certainty for TUSD users.

Comparison Summary

Conclusion

The choice between USDT and TUSD depends on your priorities as an investor. If you prioritize stability and transparency, then TrueUSD may be a better choice. However, USDT offers higher liquidity due to its much larger trading volume.

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How to Buy Tether (USDT) on Bittime

You can buy and sell  Tether (USDT)  in an easy and safe way via  Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

Tether (USDT)  is available on Bittime with  the USDT/IDR market pair . To be able to buy  USDT/IDR  at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn the complete guide on how to buy Tether (USDT) on Bittime . 

Monitor price chart movements  of Tether (USDT) , Ethereum (ETH) ,  Solana (SOL)  and other cryptos to find out today's crypto market trends in real-time on Bittime. 

Also Read:

USDT vs USDC: Which is Better?

DAI vs USDT: Who is More Attractive?

Buy USDT: The Stablecoin That Reaches $100 Billion Market Cap

DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.