TrustToken opts for a rebrand in the midst of what many are calling an industry turning point
TrueFi, a decentralized protocol that facilitates uncollateralized lending is going DAO
Stablecoin issuer and uncollateralized lending protocol TrustToken is leaning into the decentralized narrative with its new rebranding, in a tumultuous year for stablecoins and crypto as it angles to attract more institutional investors to the space.
Now known as Archblock, the company behind TrueFi, a decentralized protocol that facilitates uncollateralized lending, will hand off control of its treasury, smart contracts and development to a decentralized autonomous organization (DAO).
“We’ve issued nearly 2bn in loans, paid out tens of millions of dollars worth of interest, and maintained zero defaults,” said Ryan Rodenbaugh, Archblock’s head Of business development.
“Though we started by lending to crypto trading firms, we are currently laser focused on connecting DeFi with ‘real-world’ lending opportunities across a number of sectors to give these businesses access to the efficiency of DeFi,” he said.
Institutions are likely more weary of crypto lending platforms after the fall of now bankrupt crypto lender and trading platform Celsius, but the Archblock team is confident that a decentralized approach focused on specific use cases will bring traditional players into the space.
With the DAO now overseeing much of TrueFi’s operations, Archblock will continue to “make major contributions to the technology and growth efforts,” the company said.
As TrustToken, the company, launched its largest stablecoin, TrueUSD (TUSD), in 2018. With a current market cap of about $1.1 billion, TUSD is the sixth-largest stablecoin, behind FRAX, according to CoinGecko. The token is fully backed, “one-to-one by US dollars, as independently attested every 30 seconds” by business management firm Armanino, said Ryan Christensen, Archblock’s former chief product officer and its new CEO.
In the aftermath of TerraUSD’s collapse, transparency and security of reserves is even more important for investors and regulators, who have vowed to take a closer look at the industry. A spokesperson for the company declined to comment on Wednesday’s reports that a new stablecoin bill is in the works in Congress, but Archblock is complying with current regulations, Christensen said.
“We consider stablecoins a key building block to worldwide DeFi adoption, most exemplified by dollar-denominated global lending, and are proud to be involved at both the asset and infrastructure layers,” Christensen added.
Archblock isn’t the only crypto company looking to refresh its image in the current market environment. Enterprise technology infrastructure provider Symbiont unveiled its plans to revamp its brand earlier this month. The company is hoping to draw more interest from Wall Street with its plans.
Now is the time “to better educate the industry on the entire digital asset/blockchain ecosystem on the heels of a crypto winter,” Mark Smith, CEO and co-founder of Symbiont, said.
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