Archblock Introduces Chainlink’s Reserve Certification System to Verify Crypto Reserves

02/22/2023 13:00 • NFT Newsflash • 172 views

It is reported that Archblock, the issuer of TrueUSD stable currency, said that it would use Chainlink’s reserve certification system to let users verify whether their reserves have been fully mortgaged on the blockchain through automatic data feed.

Archblock uses Chainlink’s reserve certification system for TrueUSD verification

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Archblock, the issuer of TrueUSD stable currency, has announced that it will incorporate Chainlink’s reserve certification system to enable users to verify the mortgaging of their reserves readily. According to the company, this integration will help in ensuring that its tokens are backed by collateral reserves that are equivalent to their face value. This move is made in response to the challenges that stablecoins have reportedly encountered in the past, mainly due to insufficient reserves or lack of transparency about reserves held.

Chainlink’s reserve certification system is founded on smart contracts that allow for automatic data feed to show when token issuers have mortgaged their reserves satisfactorily. This helps to ensure that there is enough collateral to support the tokens issued in circulation. By integrating the system, Archblock users will be able to verify their reserves easily without relying on manual audits or third-party systems, which can be cumbersome.

As an issuer of Tether (USDT), Archblock has taken a significant step in enhancing the accuracy of stablecoin issuance by offering transparency in its reserve accounting. TrueUSD, the stablecoin issued by the company, has been successful in the market due to its transparency and legality, unlike other stablecoins that have faced controversies in the past. By incorporating Chainlink’s reserve certification system, Archblock aims to bolster this transparency by using smart contracts to automate the process of reserve verification.

This development is critical as it addresses one of the main challenges that have undermined the growth of stablecoins in the past. By providing an efficient and automated process for reserve verification, Archblock is setting a new standard for stablecoin issuance that promotes transparency and trust among users. It is expected that this development will attract more users to TrueUSD and other stablecoins that adopt similar initiatives.

In conclusion, the incorporation of Chainlink’s reserve certification system by Archblock is a significant step towards promoting transparency in stablecoin issuance. The system’s use of smart contracts and automatic data feeds offers an efficient and trustworthy process for verifying reserves, which is crucial in ensuring that stablecoins have sufficient collateral to support their face value. This move is expected to enhance the growth of stablecoin adoption and promote trust among users.

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Archblock Introduces Chainlink’s Reserve Certification System to Verify Crypto Reserves

Archblock uses Chainlink’s reserve certification system for TrueUSD verification

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