TrustToken ICO Secures $20m In Private Funding Round

TrustToken ICO Secures $20m In Private Funding Round

TrustToken has raised $20 million from a series of venture capital funds including Andreessen Horowitz, BlockTower Capital, Danhua Capital and GGV Capital, during its strategic funding round. TrustToken is an asset tokenisation platform which has so far issued TrueUSD, an ERC-20 token backed by US Dollars.

The strategic funding round was led by Andreessen Horowitz, officially known as a16z, a highly respected venture capital firm, which is reportedly launching a dedicated crypto fund. TrustToken is currently still in private pre-sale until July, after which a public pre-sale will be held. Comments on the group’s Telegram channel appeared to indicate there will be no public sale as such.

Tokenised Assets

The team behind TrustToken plans to issue asset-backed tokens for a wide range of assets classes including currencies, precious metals, rental properties, stocks and bonds. There are even plans to list security tokens underpinned by intellectual property including movies, TV shows, music and patents. Assets will be held in SmartTrusts, a form of digital trust managed by smart contracts.

A different token is issued for each tokenized asset, with tokens representing fractional ownership of the assets held in a SmartTrust. TrustToken’s platform is responsible for ensuring that each token is 100 percent backed by assets in the trust. The TrustToken will be used to pay service providers on the platform and execute smart contract-backed transactions related to the tokens themselves.

TrustToken is capitalizing on both the trend toward the tokenization of traditional assets, something the platform clearly aims to be a market leader in, and the increasing interest in stable coins.

The platform’s first token, TrueUSD, which now has a market capitalization of $60 million is a direct competitor to Tether – a coin which has been coming under increasing scrutiny in recent weeks. TrueUSD has already seen an increase in demand as a result of publicity arising from the announcement.