DigiFinex To Replace Tether (USDT) With Fully Collateralized TrueUSD (TUSD)

The battle continues for the self-acclaimed stablecoin Tether (USDT) as a top cryptocurrency exchange announces plans to replace the Tether with a competing stablecoin TrueUSD.

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The battle continues for the self-acclaimed stablecoin Tether (USDT) as a top cryptocurrency exchange announces plans to replace the Tether with a competing stablecoin TrueUSD.

Tether (USDT) to be replaced on TrueUSD

DigiFinex has announced that it will be replacing Tether (USDT) with TrueUSD which also provides a steady exchange rate with the USD similar to the self-acclaimed stablecoin.

The announcement noted that TrueUSD trading became available on September 14 at 15:00, Singapore time. The exchange offers TrueUSD trading pairs with Bitcoin, Ethereum and Tether.

Kiana Shek, the co-founder of DigiFinex, announced the listing of TrueUSD by the exchange. She stated:

“DigiFinex is committed to providing the most convenient and secure investment instruments, and we are confident that TrueUSD, as a fully collateralized and exchange-agnostic stablecoin, will add value for our traders. Over time, DigiFinex plans to remove all of the Tether (USDT) pairings and replace them with TrueUSD (TUSD) pairs.”

According to data from XBT.net, the Singapore based crypto exchange has handled $241 million in trading volume over the past 24 hours, making it the 10th-largest exchange by that measure.

About TrueUSD

TrueUSD was launched by TrustToken as a means of bridging real-world assets with blockchain technology. The digital asset was launched in March this year after raising about $20 million from Andreessen-Horowitz’s new cryptocurrency fund.

A spokesman for TrustToken stated:

“TrustToken and TrueUSD are regulated under U.S. federal law by FinCEN. TrueUSD is 100% collateralized and redeemable 1-to-1 with the U.S. dollar and in the top 100 most traded cryptocurrencies on the market with more than $78 million in market cap.”

The Head of Marketing and Communications at TrustToken Tony Pham told CoinDesk that the exchange has plans to launch products linked to the Yen, Euro, and other fiat currencies in the future.

The struggle continues for Tether (USDT)

Tether has been the subject of negative attention since its launch, casting doubts on their claim of being fully backed by the USD.

Given the controversies surrounding Tether, and the growing number of alternative stablecoins with better track records, the company is bound to face stiffer competition in the future.

Kiana Shek told CoinDesk that she doesn’t believe that Tether actually holds the amount of US Dollars it claims to hold in its reserve. Most traders agree with her and remain unconvinced that Tether has USD $2.8 billion available in cash.

Kiana further noted that the exchange has been looking for ways to delist USDT for months and believes the solution is to replace it with the listing of another stablecoin.

The listing of TrueUSD appeals to the Singaporean exchange as the TrustToken team complies with the regulations of U.S. Financial Crime Enforcement Network’s (FinCEN) and independent verification by an outside auditing firm.

Although the Singaporean cryptocurrency exchange has announced plans to phase Tether out of its trading platform, USDT still accounts for the highest percentage of its trading volume.

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