1. Introduction of USDS to the market
2. Features and Structure
3. Reward Approach

BitGo has announced the launch of the USDS stablecoin, fully backed by the US dollar and focused on providing high returns and transparency to users.

Introduction of USDS to the market

According to data on Coingecko, USDS will join the stablecoin market currently dominated by Tether’s USDT and Circle’s USDC. BitGo plans to launch the regulatory-compliant USDS stablecoin in Q1 of 2025.

Features and Structure

BitGo states that USDS will be fully backed by short-term T-bills, 'overnight repos', and cash to ensure low risk and high liquidity. The rewards scheme will only consider institutions providing liquidity to the ecosystem. Monthly audits will be conducted by top accounting firms, and real-time proof-of-reserves will be published on usdstandard.com.

Reward Approach

BitGo claims that traditional stablecoin issuers funnel 100% of their earnings to exchanges, leaving participants unrewarded. In contrast, USDS ecosystem participants will receive up to 98% of the rewards from their assets. BitGo promises this new approach will create a more open and inclusive system, promoting ecosystem growth.

With the launch of USDS, BitGo aims to shift the current dynamics of the stablecoin market by offering more transparent and beneficial conditions for ecosystem participants.