The high volatility level of crypto markets makes many investors particularly cautious when trading digital tokens. Many resort to acquiring stablecoins to navigate through tricky times, and you might think now’s the right time for that move.
The question is, which stablecoin is better for your assets? Should you convert BNB to USDT, or it’s wiser to check out TUSD? Our experts devised a detailed comparison to help you choose between the two popular stable tokens!
What Is USDT?
Before choosing USDT or TUSD, it’s imperative to get to know both currencies. We’ll start with Tether (USDT), whose history is rich and goes back to 2014.
Tether is a multi-chain currency that supports many blockchains, including but not limited to Ethereum, EOS, Solana, and Bitcoin. Its main advantage is widespread adoption, ranging from crypto exchanges to payment services and DeFI protocols.
USDT is pegged to the US dollar, and it’s 100% backed by fiat reserves. The reserves always have an identical or larger number of dollars than the USDT tokens in circulation. You can check the current balances on different networks, as well as independent auditor reports on Tether’s website.
What Is TUSD?
TrueUSD first launched in 2018 after its creators realized there was room for another fiat-backed stablecoin in the crypto market. The company behind it is TrustToken, whose founder is Rafael Cosman.
TUSD uses a simple principle: each token created aims to maintain value at $1 and is supported by an actual dollar held in the reserves of banks partnered with TrustToken. The project remains dedicated to securing maximum transparency. They achieve this by offering real-time attestation reports. That means you can head to the token’s official website and find information on the current collateral ratio and real-time reserve balance.
TrueUSD is trusted by many exchanges, and it’s a multi-chain platform. Although its native networks are Ethereum, TRON, Avalanche, and BNB Smart Chain, it’s notable that there are also six bridged networks.
USDT vs. TUSD: How Do They Compare?
A quick look at the basics will tell you that USDT is far more popular among investors. With the market cap exceeding $80 billion, Tether takes about two-thirds of the total stablecoin share. USDC and DAI follow, and TUSD is only fourth, with the cap set at $3 billion. However, it’s worth noting that it’s getting closer to DAI, which has a market cap placed at $5 billion.
As expected, Tether also has a bigger trading volume than TrueUSD. Investors trade USDT valued at approximately $18 billion per 24 hours, making this token one of the most traded cryptocurrencies overall. TUSD isn’t even in the top ten, with its trading volume usually set at $200 million per 24 hours.
Both USDT and TUSD are the same types of stablecoins since they are backed 100% by fiat reserves. The main use is to be a secure asset during volatile times for traders, but you can use both coins for international payments, loans, and similar purposes.
Another similarity is that both Tether and TrueUSD are blockchain-ready. You’ll find these digital tokens on various networks, ranging from Ethereum and Polygon to Tezos, Statemine, and Omni.
|Market Capitalization||$80 billion||$3 billion|
|Liquidity||High trading volume (22.3% of the market cap in 24h)||Medium trading volume (6.1% of the market cap in 24h)|
|Use Cases||Trading, margin funding, loans, international payments||Trading, margin funding, loans, international payments|
|Token Ecosystem||ERC-20, TRC, EOS, and others||ERC-20, TRC, EOS, and others|
USDT vs. TUSD: What Is Better for You?
At first glance, the choice seems obvious. Tether has a longer tradition, and its market cap is over 25 times bigger than TrueUSD. And while you can’t go wrong with USDT, there’s an important reason why TUSD is also a viable alternative.
Its unique approach to securing real-time checks of fiat reserves ensures that you can confirm that the reserves are stable at any moment. Thanks to that, there’s a significantly lower risk of losing your investment because you were unaware that fiat-backing wasn’t at an expected level. But ultimately, the decision is completely up to you, and USDT and TUSD are both good choices.