We published the Stablecoin Code of Ethics as a first step towards an industry-wide dialogue about the best practices for fiat-backed stablecoins. These principles have driven the development of TrueUSD. This post describes the practices we’ve established for TrueUSD to uphold the Code of Ethics.
1. Fully Backed. Every token will have the fiat equivalent settled in the bank to back it.
- Every month, we publish proof of funds from Cohen & Co, an independent third-party U.S. certified public accounting (CPA) firm. The attestations are conducted in accordance with the attestation standards established by the American Institute of Certified Public Accountants.
- Our legal agreements prevent us from minting tokens until our system has received a signed verification from a banking partner, verifying that the corresponding dollars have arrived in a TrueUSD escrow account.
2. Stable. We will never deliberately cause the market price of our stablecoin to be worth less or more than the underlying currency.
- Any promotions that TrueUSD runs will include controls that prevent them from destabilizing the stablecoin’s market price.
3. Redeemable. We will never prevent or discourage legitimate redemptions.
- We will not block stablecoin holders from redeeming, regardless of the quantity. If you want to redeem $1mm or $10mm or $50mm, you are welcome to and we will not discourage you from doing so.
- We have publicly posted the criteria for mint and redemption of TrueUSD.
4. Compliant. We will ensure long-term survival of the stablecoin through regulatory compliance.
- We use an enterprise-grade KYC/AML system to meet all customer identification and anti-money-laundering requirements.
- We are regulated at the federal level through an MSB from FinCEN. TrueUSD is also subject to regulatory scrutiny by the state trust regulator in Nevada, DBI. We have posted our regulatory position and a list of our compliance policies.