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TrueUSD is partnering with Signature Bank to integrate its stablecoin, TUSD, with the bank’s blockchain-based payments platform, Signet. Signature is a New York-based full-service commercial bank with 37 private client offices spread across New York, Connecticut, California, and North Carolina.
Partnership Will Enable Signature Bank To Offer TUSD To Clients
The partnership with TrueUSD will allow Signature Bank to offer its customers exposure to TUSD, a USD-pegged stablecoin that was created by the TrustToken Platform. The digital asset is the first of its kind to be backed by 1-for-1 US dollar and subject to live on-chain attestations. The token utilizes multiple escrow accounts to lower counterparty risks and guarantees legal coverage for token holders against misappropriation. At present, the token’s supply stands at more than $1.4 billion in circulation, with billions of dollars exchanged in annual transactions.
Signature’s digital payments platform Signet is based on the Ethereum blockchain and enables commercial transactions with real-time payments in US dollars. The platform offers round-the-clock support and is the first such service to be approved by the New York State Department of Financial Services.
The relationship between these entities could usher major advances for TUSD as Signature is a well-known institution in the market. The bank is a member of the Federal Deposit Insurance Corporation (FDIC) and commenced operations in 2001. As of March 31, 2021, Signature has reached $84.5 billion in assets. With the launch of Signet, the institution became the first FDIC-insured bank to own a blockchain-based digital payments platform.
Signet Could Propel TUSD Adoption
Joseph J. DePaolo, President and Chief Executive Officer at Signature Bank, opines that a relationship with TrueUSD will extend the token’s “growth and adoption as an attested, dollar-backed digital currency”. He also added that integration with Signet “brings global TUSD customers another secure real-time settlement option”.
The CEO of TrustToken, Rafael Cosman is also optimistic about the partnership’s potential for TUSD adoption. He claims that the tie-up with Signature Bank will help the “most transparent digital dollar” reach more hands quickly. In addition to this, he stated, “Offering TUSD users a new way to instantly settle via Signet is a key step to grow TUSD’s accessibility, transparency, and utility.”