As of June 2, 2023, TUSD claims to be backed by cash, cash equivalents and short-term, highly liquid investments of sufficient credit quality, in fully segregated accounts held for the benefit of TUSD holders.. However, the issuer does not disclose the exact nature and amount of each asset.
For off-chain collateral, we rank storage methods as follows (highest to lowest)
With regulated custodians in reputable jurisdictions
With regulated custodians not in reputable jurisdictions (e.g, BVI, Bahamas)
Others / Undisclosed
TUSD reserves are believed to be held at Flow Bank (Switzerland) and Capital Union Bank (Bahamas).
All customer assets in TUSD’s reserves are claimed to be in fully segregated from the issuer’s corporate treasury. However, they are not bankruptcy-remote.
The third-party attestation provider for TUSD's reserves, The Network Firm, recently identified that a new bank account of the issuer isn't clearly segregated.