Rafael Cosman: Innovating the Future of Finance with TrueUSD

• Rafael Cosman co-founded TrueUSD with a focus on transparency, making it one of the most trusted stablecoins globally.
• By enabling zero-collateral lending based on reputation, Cosman’s TrueFi protocol revolutionized decentralized finance.

Rafael Cosman, the co-founder of TrustToken, has emerged as a prominent figure in the fast growing realm of decentralized finance (DeFi). His path in the blockchain and cryptocurrency space demonstrates his creative approach to mixing traditional finance with decentralized technology.

Cosman created TrueUSD (TUSD) and launched TrueFi to democratize access to capital by giving digital currencies and decentralized protocols real-world utility. However, Rafael Cosman’s narrative is about much more than statistics and technology; it is about one person’s resolve to redefine banking for the modern day.

Rafael Cosman: Early Tech Ventures and Social Impact Initiatives 

Prior to entering the blockchain sector, Cosman had a strong experience in technology and machine intelligence. He earned a computer science degree from Stanford University, where he gained extensive knowledge of artificial intelligence and machine learning.

His experience at Google Brain influenced his understanding of new technologies and their prospective applications.

Cosman’s desire to create something significant—something that could fundamentally change how people access and use financial services around the world—motivated him despite the fact that his technological career appeared to be promising.

But Cosman’s entrepreneurial adventure did not start with TrustToken. He co-founded StreetCode Academy, a nonprofit that teaches technology to marginalized youngsters in East Palo Alto.

The Academy, which continues to educate hundreds of students each year, exemplifies Cosman’s commitment to developing possibilities for communities who are frequently left behind by the digital boom. This social impact focus would subsequently shape his approach to democratizing finance with TrustToken.

The Launch of TrueUSD: A Commitment to Transparency 

In 2018, Rafael Cosman and his team introduced TrueUSD (TUSD), a stablecoin wholly backed by the US dollar that promises transparency and security. At the time, stablecoins were gaining popularity, but TUSD stood out for its emphasis on independent audits and transparency.

Unlike earlier stablecoins that functioned with no regulatory monitoring, Cosman ensured that TUSD received periodic attestations from third-party auditors, a strategy that soothed users and increased trust.

Cosman’s approach to TUSD was straightforward but effective: “If people are to believe a digital asset that claims to be backed by real-world assets, they must be able to verify that claim.” This concept was developed in direct response to critiques leveled at existing stablecoins, such as Tether, for its lack of transparency.

TUSD introduced a paradigm in which token holders had legal rights to the underlying assets by involving numerous fiduciary partners in the reserve fund holding.

Cosman’s emphasis on regulation and transparency helped TUSD stand out and allowed it to grow into one of the world’s most trusted stablecoins, transferring billions of dollars across 110 nations.

TrueFi: Pioneering Unsecured Lending in DeFi 

Rafael Cosman’s vision was not restricted to stablecoins. In 2020, he made a significant step ahead by creating TrueFi, a decentralized finance technology that permits unsecured lending.

This was a notable innovation because, before to TrueFi, most DeFi platforms required borrowers to post enormous amounts of collateral to secure a loan.

TrueFi, according to Cosman, was about bridging the gap between traditional and decentralized finance. He observed that, while reputation-based lending was a trillion-dollar industry in traditional markets, it did not exist in DeFi.

TrueFi aimed to change that by granting zero-collateral loans to well-known borrowers, including Alameda Research and Wintermute Trading.

TrueFi developed a methodology that allowed borrowers to access liquidity without having to tie up substantial amounts of collateral. This innovation has processed over $100 million in loans with no defaults, demonstrating the promise for reputation-based lending on blockchain.

Archblock: A New Chapter in Decentralized Finance Leadership 

In 2023, TrustToken underwent a dramatic rebranding, becoming Archblock. This marked a new era for the company, as Rafael Cosman stepped aside as CEO to take on an advisory role. The change was part of a larger plan to decentralize TrueFi and transfer control to a decentralized autonomous organization (DAO).

As part of the process, Cosman handed over the reins to Ryan Christensen, a seasoned technologist and entrepreneur who previously served as TrustToken’s Chief Product Officer.

Cosman’s choice to stay away from day-to-day operations was deliberate. He believed that the company was poised to reach new heights under a leadership team focused on institutional growth. “Building this company has been the greatest adventure of my life,” Cosman remarked, reflecting on his stint as CEO.

“I’m excited to continue as a board member and advisor—helping guide the future direction while trusting the capable team we’ve built to carry it forward.”