BitGo to Launch USDS ‘Reward’ Stablecoin Starting January 2025

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2024-09-18 00:34:45

BitGo Exchange Stablecoin

BitGo to launch a dollar-backed reward coin, dubbed ‘USDS.’ Last updated:

September 18, 2024 04:34 EDT

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September 18, 2024 04:34 EDT

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The digital asset custodian announced the launch at Token2049 in Singapore on Wednesday. Last month, the platform received the Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS).

Per the announcement, BitGo plans to roll out its reward-bearing stablecoin starting January 2025. Interestingly, USDS is an “open participation” stablecoin, which rewards institutions that power its liquidity.

The USD-Standard (USDS) empowers the community by “deploying rewards and democratising the stablecoin experience,” the release read.

“USDS is designed to challenge the existing stablecoin market dynamics, specifically targeting the dominance of single-issuers like Circle and Tether.”

USDS, unlike traditional stablecoins, practices reward that deploys up to 98% of earnings to participants who support the eco.

BitGo CEO Mike Belshe said that the main motive for launching USDS is to create a more open and fair that promotes innovation and, most importantly, rewards those who build the network.

“A stablecoin’s true value comes from the people using it, the liquidity they provide, and the access points for interchange.”

How is USDS Different From Traditional Stablecoins?

Bitgo’s new 1:1 USD-backed stablecoin is fully backed by short-duration T-bills, overnight repos, and cash. This would ensure high liquidity and low risk.

Further, the stablecoin would publish real-time proof-of-reserves on its website and monthly audits conducted by top-tier accounting firms.

“USDS is accessible to a global audience, including institutions, individuals, and DeFi platforms,” BitGo noted. “Eligible participants, such as institutional exchanges and liquidity providers, can register with BitGo to start earning rewards.”

BitGo believes that deploying rewards across the network would encourage widespread adoption and deep liquidity. This would in-turn create a more robust and resilient stablecoin eco.

Additionally, BitGo plans to list USDS stablecoin on all exchanges and expects to have $10 billion in assets by the end of 2025.

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