TrustToken, a platform where you can buy and sell tokenized assets, raised $20 million in a token sale led by venture capital firm Andreessen Horowitz (A16z), as reported by Cointelegraph. The first token listed on the official website is TrueUSD – a stablecoin whose price is pegged to the US dollar.
Some of the other investors in the ICO included cryptocurrency investment firm BlockTower Capital and California-based venture capital company Danhua Capital. Danny An, co-founder and CEO of TrustToken, said, “The support of these leading investment firms represents a significant step towards our goal to build a compliant tokenization platform for currencies, commodities, and real-world assets. We will draw on the combined expertise and network of these firms as we grow our industry partnerships and extend the reach of our first product, TrueUSD.”
TrustToken plans on utilizing the money to develop its platform as well as legal, product and engineering sectors. The startup has also posted jobs for various positions in San Francisco.
In an interview with Bitcoinist, CTO and co-founder Rafael Cosman explained that they will always make sure that “redeemability leads to stability”. Cosman said that even if TUSD’s demand increased, TrustToken won’t print new tokens. TUSD is also not considered a security which makes the legal process easier for TrustToken.
Using the platform is quite simple: an individual will deposit the selected asset to an escrow account held by a trustee. Next, TrustToken will create and send new tokens that will be equal to the asset’s value.
Earlier this month, cryptocurrency trading platform Hybrid Block announced its partnership with TrustToken. After being listed on Binance and maintaining its value close to $1, TUSD will be used by Hybrid Block’s BaseTrade platform. Due to its stability, the token will be used as a base pair. Some of the pairs include BTC/TUSD, ETH/TUSD, LTC/TUSD, XRP/TUSD and HYB/TUSD.