TrustToken Publishes Third-Party Audit Report for TrueUSD Stablecoin

News and Analysis

TrustToken, the company behind the USD-pegged stablecoin TrueUSD, has published a third-party audit report of its bank account holdings which are supporting the supply of the digital asset.

According to the report by Ohio-based public accounting firm Cohen & Company, the company holds $199,063,885 as of March 31, and the balance of issued TrueUSD tokens are 198,982,291.

TrustToken also cleared the nature of their relationship with Cohen & Company, an independent third-party U.S. certified public accounting (CPA) firm, stating that the audit was done as a part of the company’s “commitment to compliance.”

“As a regulated entity, Cohen & Company provides third-party examinations of the collateralized funds held in escrow to back all TrueUSD (TUSD) in circulation. Cohen & Company is not the parent company of, nor has any financial interest in, TrustToken, Inc. or any of its affiliates. The results of Cohen & Company’s examinations are published in monthly attestation reports,” the company said in an annoucement.

TrueUSD is the first asset-backed token created on the TrustToken platform. Earlier this month, TrustToken launched a pound sterling-backed token called TrueGBP.

“We set out to build a fully collateralized USD-backed stablecoin that the community would use and trust. This attestation with Cohen & Company is another step towards that goal,” said the company.

TrueUSD is not the only stablecoin publishing third-party audit reports of its currency chest. Circle, a Goldman Sachs-backed crypto startup, has also maintained a transparent approach by publishing audit reports of its dollar-pegged USDC every month.

However, Tether USDT, the largest stablecoin by market capitalization, is still maintaining an opaque business approach having not conducted any third-party audit of its books. Lat month, crypto community members noticed that Tether had changed its official website guidelines, removing the guarantee that USDT is backed 1:1 with U.S. dollars. Instead, the company claims that it is able to operate its stablecoin pegged valuation by putting up assets similar in wroth. However, these assets outside of USD have yet to be verified, and may not offer the same price stability or low volatility.

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