The document summarizes the growth of TrustToken and its stablecoin TrueUSD from January 2018 to present. In January 2018, TrustToken had a 5 person team, no TrueUSD in circulation, and $0 in monthly volume. As of today, it has a 32 person team with $31M in funding, over $230M of TrueUSD in circulation, and $3B in monthly volume. The document then provides explanations and examples of how stablecoins can improve upon traditional payment methods by offering faster settlement, lower costs, and greater accessibility worldwide. Potential future applications discussed include cryptocurrency market onramps/offramps, international remittances, foreign exchange, and more use cases emerging daily.

1. WELCOMES
Tory Reiss
TrustToken

2. You might be
wondering…

3. Who is this guy and what right
does he have to talk about
programmable currency?!

4. January 2018:
• 5 person team
• $0 of TrueUSD in existence
• $0 in monthly volume
Today:
• 32 person team, with $31M funding
from a16z, Founders Fund, and
others.
• ~$230M+ TrueUSD in circulation
• ~$3B in monthly volume
I’m the Cofounder
of this company
M
ar-18
Apr-18M
ay-18Jun-18
Jul-18Aug-18Sep-18Oct-18Nov-18Dec-18Jan-19Feb-19M
ar-19
Apr-19
0
500
1,000
1,500
2,000
2,500
3,000
MonthlyTotalVolumes
TrueUSD Monthly Volumes
(in Millions)By TrustToken

6. What are you curious about?
This presentation isn’t about me!
What the #&$% is a
“Stablecoin”?
How does money actually
move around the banking
system today?
Why should I care?
What are some futuristic
applications of stablecoins?

7. What the #&$% is a “Stablecoin”?

8. First, let’s take a step back.
What is a traditional payment instrument?
Definition:
A fully collateralized, transferable, and programable tool that
can be redeemed for fiat money (eg dollars, pounds, etc.)

9. Custodian Bank Blockchain Anyone, anywhere

10. ESCROW
ACCOUNT
$ 101 mm
Wires $1mm
Mints 1mm TUSD
+ $1 mm
USER
SMART CONTRACT
+1 mm TUSD
TUSD
MARKET CAP
101 mm
+ 1 mm
How it works
ESCROW
ACCOUNT
$ 99 mm
Wires $1mm
Redeems 1mm TUSD
- $1 mm
USER
SMART CONTRACT
+ $1 mm
- 1 mm TUSD
TUSD
MARKET CAP
99 mm
- 1 mm
Purchase Redeem

11. Ok… but WTF is a
stablecoin?

12. “A fully collateralized, transferable, and
programable tool that can be redeemed for fiat
money (eg dollars, pounds, etc).”
Let’s recall our definition of a
traditional payment instrument:

13. –Omid Malekan
Chief Blockchain Explainer at Citi Bank
“A fully collateralized, transferrable, and
programmable token that can be redeemed for fiat
money (eg dollars, pounds, etc).”
Well a fiat stablecoin is:
$

14. Why should I care?

15. Today: The payment space is dominated by traditional players
who act as intermediaries and take very generous fees.

16. Who has paid a fee to
send money or make a
payment?

17. Today: This space is dominated by traditional players
who act as intermediaries and take very generous fees.
Company Market Cap
Visa $320.5B
PayPal $112.6B
Adyen $19.8B
PagSeguro $8.5B
WesternUnion $7.9B
Transferwise $2B

18. –McKinsey (h/t: Omid Malekan)
Fact: Most payments are not done in physical cash, but
with cash proxies held at institutions.
Fact: In 2017, global payments industry revenues hit $2T

19. Why does this matter?
• Speed
• Cost
• Reach
• Accessibility
• Real World Use Cases

20. Speed
Payment Type Settlement Time
Paper Check 5 Days
ACH 1 - 2 Days
Wire 1 - 5 Days
Fiat Stablecoin Minutes or Seconds
E-Pay (PayPal, Cash App, etc) Seconds

23. Cost
Method Fee ($1 million)
PayPal (Merchant) $29,000
TransferWise $600
Wire $25 - $100
Fiat Stablecoin $0.01

25. Reach

26. Accessibility
Borderless transfers between
everyone in the world.
Available to anyone with a smart
phone or computer; can also work
offline.
A common protocol for developers,
consumers, and businesses to
interact with or build upon.
Not subject to local banking
availability; Self-sovereignty avoids
any local banking risks or
government restrictions.

27. Use Cases
• Cryptocurrency market onramp/offramp
• Remittances & international payments
• Foreign Exchange (Forex)
• Store of Value across jurisdictions
• Frictionless supply chains
• Partnerships for lending and savings options
• Access to novel investments
• … and we see new use cases emerging
every day.

28. Save / Send
Wallet & Custody
Partners
Spend
Debit Card
Purchase and
Redeem
USD, GBP, etc.
Invest
Lending &
Investment
Borrow
Lending Partners
Crypto Rails
Traditional Banking
Forex
Move between
tokenized currencies

29. Save / Send
Wallet & Custody
Partners
Spend
Debit Card
Purchase and
Redeem
USD, GBP, etc.
Invest
Lending &
Investment Partners
Borrow
Lending Partners
Crypto Rails
Traditional Banking
Forex
Move between
tokenized currencies
{A Global Banking Stack

30. We are now on the fast track to a world where
all payments are free and everyone has access
to basic financial services.
What will this mean for you?

31. How does money actually move
around the banking system today?

32. $20
The blue bank
now has a $20
liability (to Tom)
on its balance
sheet.
Hi I’m Tom

33. $20
The blue bank updates
its internal database
instantly and now has
a $20 liability to Jane
on its balance sheet.
Hi I’m Tom Hi, I’m Jane, and
you owe me money.

34. Previously, Blue Bank owed
$20 to Tom, now it owes $20
to Orange Bank.
Previously, Orange Bank was
flat, now it owes $20 to
Charlie and is owed $20 by
Blue Bank.
Hi I’m Tom
Hi, I’m Bob,
and you owe me
money.
$ $
Correspondant
Banking Arrangement

36. There are some big problems:
1.
Counterparty Risk
2.
Liquidity
3.
Cost

37. Hi I’m Tom
Hi, I’m Bob,
and you owe me
money.
$ $
Correspondant
Banking Arrangement
Deferred Net
Settlement
(BACS/FP, EURO1, ACH, Visa,
PayPal, etc)
In these systems, messages are not
exchanged over SWIFT. Instead,
messages (or files) are sent to a
central “clearing” system, which keeps
track of all the payments, and then, on
some schedule, calculates the net
amount owed by each bank to each
other.

38. There’s still two big problems
1.
Counterparty Risk
2.
Settlement Finality

39. Central Bank
(Federal Reserve, European
Central Bank, etc)
Central Bank
Accounts
RTGS (FedWire,
CHAPS, etc)
• Real Time – happens
instantly.
• Gross – no netting
(otherwise it couldn’t
be instant)
• Settlement – with
finality; no reversals

40. What about
credit card
payments?

41. You thought
that was it,
didn’t you?

42. All in all, there are
at minimum five
parties involved
and it’s a form of
deferred net
settlement.

43. How does this
compare to using a
stablecoin?

44. Custodian Bank
Blockchain
Anyone, anywhere.
Ends up it’s a lot
simpler than you
think.

45. Custodian Bank
Blockchain
Anyone, anywhere.
• Real Time – happens
instantly.
• Gross – no netting
(otherwise it couldn’t be
instant)
• Settlement – with finality;
no reversals

46. What are some futuristic
applications of stablecoins?

53. @TrustToken
www.TrustToken.com
blog.trusttoken.com /TrustToken
For follow-up’s, wacky ideas, or feedback:
Tory@TrustToken.com
@TheeTory L www.LinkedIn.com/in/ToryReiss