TrustToken, the asset tokenization platform and creator of the TrueUSD (TUSD) stablecoin, has successfully completed a $20 million USD strategic round, with support from leading investment firms Andreessen Horowitz, BlockTower Capital, Danhua Capital, GGV Capital, and other investors. The funds are earmarked for the development of the TrustToken asset tokenization platform and expansion of its legal, partnership, product, and engineering departments. Since launching in March 2018, TrueUSD’s market capitalization has grown to $49 million, with an average daily trading volume of $22 million.
“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,” TrustToken CEO Danny An said. “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.”
BlockTower Capital is a cryptocurrency investment firm that brings professional trading and portfolio management to the emerging digital asset class. Led by Matthew Goetz, a former Goldman Sachs engineer, and Ari Paul, former risk manager at the University of Chicago’s endowment investment office, BlockTower raised $140 million USD this January to expand its digital currency hedge fund.
“Tokenization of real-world assets will produce value much in the same way that ‘equitization’ did. We can now buy fractional ownership in a basket of commercial office buildings or commodities via equity instruments,” Mr. Paul said. “Tokenization will further reduce friction in asset trading and ownership.”
Danhua Venture Capital is a venture capital fund that primarily invests in early-stage and growth companies with disruptive technologies and business models, large market potentials, and outstanding teams. Over the last decade, it has focused on companies at the forefront of the technology sector, including blockchain.
GGV Capital is a multi-stage venture capital firm based in Silicon Valley, Shanghai, and Beijing. With $3.8 billion USD in capital under management, GGV Capital has invested in more than 280 leading technology companies, including Airbnb, Slack, and Alibaba.
“We are thrilled to back the TrustToken team and its global ambition to tokenize assets,” GGV managing partner Jeff Richards said. “One of the most significant benefits of blockchain and cryptocurrency technology is the potential to democratize and increase global participation in financial markets. TrustToken is one of the leading platforms driving this concept forward on a worldwide basis, and doing it with trust at the core of its mission.”
TrustToken’s platform leverages blockchain to create asset-backed tokens that can be bought and sold around the world. TrustToken’s first product, TrueUSD, is a stablecoin that is redeemable 1-for-1 for U.S. dollars. Each TrueUSD token is redeemable for $1 USD through the company’s website. TrueUSD can be currently traded on and across the world’s top cryptocurrency exchanges such as Binance, Bittrex, and Upbit.