The benefits of new stablecoin TrueCAD

TrustToken recently announced the release of TrueCAD. Here, we take a look at some of the benefits a Canadian-dollar backed stablecoin brings

TrustToken, the creators of one of the most reputable US dollar-backed stablecoins on the market TrueUSD, recently launched TrueCAD. As the name suggests, TrueCAD is backed by Canadian dollars and joins the company’s growing family of stablecoins, which also includes TrueAUD and TrueGDP.

Unlike Tether, which has been shrouded in controversy about whether it has sufficient funds to back it or not, the TrustToken group guarantees full transparency and 1:1 parity. So what are some of the other benefits of a Canadian-backed stablecoin?

TrueCAD gives traders more options

Alongside the existing stablecoins on the market, the launch of TrueCAD offers users more options for trading.

As the TrustToken group expands on its goals of tokenising real-world assets from real estate to stocks and bonds, TrueCAD is but one of four new stablecoins being rolled out by this team. Others coming later on in 2019 include TrueEUR and TrueHKD.

As the storm clouds brew over Tether and Bitfinex, TrustToken’s ‘trustworthy’ offerings are a welcome need for traders. With the amount of fiat-backed stablecoins growing, they’re providing greater opportunities for investors and traders around the world. According to the company:

“We wanted a simple stablecoin, without the need to trust some company’s hidden bank account or special algorithm. Our legal framework enables you to exchange CAD directly with an escrow account – we never touch the funds. Our open source smart contracts ensure a 1:1 parity between TrueCAD and CAD in the accounts.”

TrueCAD expands on the capabilities of stablecoins beyond a mere store of value or for trading on exchanges. With TrueCAD, holders can already realise some of the benefits of asset tokenisation. These include fractional ownership, global trade, and previously unavailable financial opportunities.

“Having a basket of stablecoins creates many use cases to get us closer to this vision.”

Legal, stable, and 1:1 parity

Each TrueCAD is 100% collateralised by Canadian dollars that are safely held in professional trust firms’ banks. Everyone who uses TrueCAD must pass a KYC/AML check. This makes it legal and compliant, with the added advantage of reduced volatility that stablecoins bring.

In line with its policy of complete transparency, the banks holding the Canadian dollars backing TrueCAD publish monthly reports. These are public and viewable to anyone.

Stablecoins like TrueCAD allow people to enter the crypto market without the exposure to price fluctuations that coins like Bitcoin and Ether bring.

Canadian citizens or residents can now move their money into crypto safely without immediate exposure to other cryptocurrencies, thus hedging against volatility.

Built on the TrustToken platform

Another advantage of TrueCAD is that it is part of a family of stablecoins on the TrustToken platform. The group has a wider goal of making the tokenisation of real-world assets possible.

This carries with it innumerable benefits for users and can potentially unlock trillions of dollars of value from the global economy.

According to the company website explainer video, blockchain has released a global liquid market of digital assets. However, there is a much bigger market that has yet to be tapped – the $250 trillion market of real-world assets.

Beyond real estate, private equity, stocks, and bonds, TrustToken talks about assets that have never been traded on global exchanges before. These include sports teams, movie shows, books, artwork, and more.

Tokenising these assets and programming them into a smart contract on the blockchain can allow for fractional ownership, simple trading without intermediaries, and unlocking wealth.

Asset tokenisation also makes the transfer of ownership infinitely easier. Instead of needing days or even weeks to go through a traditional bank, custodian bank, clearinghouse, and all sorts of other hoops, the simple peer-to-peer technology allows for a frictionless transfer at a greatly reduced cost.

It’s a far simpler process that cuts through paperwork and effectively democratises investment to all. Anyone can access investment opportunities that were previously only in the domain of the ultra-wealthy.

Should investors be so inclined, they could own 1% of a luxury building in Paris or a fraction of a private business in Manhattan and reap the corresponding fractional returns.

Final thoughts

TrueUSD has quickly become the most trusted US dollar-backed stablecoin on the market. Now that the company is rolling out additional stablecoins for people with different base currencies, more and more people can trade without the volatility and benefit from asset tokenisation.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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