Amidst negative rumours about Tether, the US-based cryptocurrency exchange Bittrex published a notice stating it will list a stable coin tied to the US dollar rate.

This could be the first step for Bittrex on the way to the rejection of Tether. The TrueUSD project (traded under the ticker TUSD) promises transparency, regular audits of bank deposits and legal protection of investors who will become holders of TUSD tokens.

TrueUSD belongs to the class of so-called stable coins, whose exchange rate is tied to real assets and does not imply high volatility.

"We believe TrueUSD will provide a long-awaited stable trading instrument for cryptocurrency traders, and enables consumers and businesses to use a cryptocurrency as a medium of exchange," the project description reads.

TrueUSD is supported by well-known venture investors. Thus, Ari Paul of BlockTower Capital stated:

"I've eagerly awaited the launch of a transparent and regulatory compliant stablecoin. TrueUSD will make it easier for BlockTower to trade cryptocurrency across exchanges."

The main competitor of TrueUSD on the market is the more widespread Tether, whose tokens are also claimed to be tied to the US dollar rate. But recently the crypto community demonstrated an increased level of mistrust to Tether, during that issued Tether coins are not really backed by real bank deposits. The company did not conduct regular audits. The latest check in September 2017 showed that Tether accounts actually have more than $400 million, which at that time corresponded to the volume of Tether token emission.

But the check was called preliminary, and later Tether broke the agreement with its auditor Friedman LLP. This further fueled crypto community doubts of Tether solvency. In December, the US Commodity Futures Trading Commission (CFTC) launched an investigation into Tether and affiliated Bitfinex exchange, which was suspected by customers in using Tether tokens to manipulate the market price of bitcoin.

 

The largest trading platforms for Tether are the crypto-exchanges Binance, Bittrex, Poloniex, Huobi, and Bitfinex.

In early 2018, the CEO of Bittrex, Bill Shihara, disclosed that the popular Seattle-based cryptocurrency exchange could soon allow deposits in US dollars.