• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

BitGo plans to release new dollar-backed stablecoin USDS

user avatar

by Giorgi Kostiuk

10 months ago


  1. A Fresh Take on Stablecoins
  2. Incentivizing Liquidity Providers
  3. Recent Developments and Risks

  4. At the Token2049 event in Singapore, BitGo announced plans to launch a new dollar-backed stablecoin named USDS next year.

    A Fresh Take on Stablecoins

    BitGo’s new stablecoin, USDS, will be backed by short-term Treasury bills, overnight repos, and cash, similar to many existing stablecoins. The company is positioning USDS as an open-participation stablecoin, which will reward institutions that contribute liquidity to its ecosystem.

    “Existing stablecoins serve an important role, but we see an opportunity to create something more open and fair. The key innovation with USDS is that it rewards those who help grow the network.”Mike Belshe

    Incentivizing Liquidity Providers

    The core feature of USDS is its unique approach to rewarding liquidity providers. Institutions that contribute to the USDS network will receive returns generated from the stablecoin’s reserves. These returns will be distributed based on the size of their contributions, providing a financial incentive for participating in the ecosystem.

    “Returns from the cash backing USDS will be shared with liquidity providers. This not only incentivizes participation but also aligns the interests of all parties involved.”Mike Belshe

    Recent Developments and Risks

    Amid these exciting announcements, BitGo faces scrutiny and potential challenges. Last August, a proposal from risk analysts at BA Labs suggested changing protocol parameters to minimize exposure to Wrapped Bitcoin (WBTC). This proposal is reportedly influenced by upcoming changes in BitGo’s custody arrangements, which will move its WBTC business from the US to Singapore and Hong Kong. The proposal highlights concerns about the involvement of prominent figures, such as Justin Sun, in BitGo’s operations. Sun’s previous associations with TUSD and the resulting market issues have raised alarms among some stakeholders. BA Labs expressed concerns that Sun’s involvement could present elevated risks to the USDS network. Despite these concerns, Belshe downplayed the risks associated with Sun’s involvement, stating that BitGo had anticipated such reactions and aimed to address them transparently.

    BitGo’s new stablecoin USDS promises to introduce unique incentives for liquidity providers and offer open participation for institutions and individuals worldwide. Despite existing concerns and risks, the company’s leadership is confident in the transparency and reliability of the new product.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

Activity of Automated Bots on LetsBonk and Pump.fun: Token Generation

chest

High activity of token generation by automated bots on LetsBonk and Pump.fun is changing the memecoin market landscape.

user avatarGiorgi Kostiuk

XRP: Fluctuations and Influencing Factors Behind Price Dynamics

chest

This article explores the past price movements of XRP and the factors influencing its dynamics, focusing on 2017 and current market expectations.

user avatarGiorgi Kostiuk

Dogecoin Up 5.86% as Speculation Grows Around America Party Support

chest

Dogecoin has risen by 5.86% due to speculation surrounding Elon Musk's new political party and potential support for cryptocurrencies.

user avatarGiorgi Kostiuk

SEC Streamlines Investment Path for Crypto ETFs: What It Means?

chest

SEC introduces a new standard for reviewing crypto ETFs, potentially transforming the digital asset market.

user avatarGiorgi Kostiuk

Removal of Pump.fun Token Sale Page on Gate.io: Reasons and Consequences

chest

Gate.io has removed the PUMP token sale page for Pump.fun, raising questions about token economics and legal issues.

user avatarGiorgi Kostiuk

Ethereum and Little Pepe Predictions: How Bitcoin May Change the Market

chest

Ethereum may reach $18,500 while Little Pepe may hit $3 if Bitcoin rises to $300,000. An analysis of factors and conditions.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.