Crypto custody giant BitGo announced the launch of a new stablecoin, USDS, next year. The main feature of the new product will be a unique reward system for institutions providing liquidity to its network.
USDS Announcement and Features
The announcement was made at the Token2049 conference in Singapore. USDS, backed by U.S. Treasury bills, overnight repos, and cash, will follow a model similar to other stablecoins. However, BitGo claims it will be the first 'open-participation' stablecoin, inviting institutions to help build the network and share in its success.
Rewards for Participants
BitGo CEO Mike Belshe, speaking to CoinDesk ahead of his Token2049 keynote, highlighted: '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.' The rewards within USDS will be distributed to institutions providing liquidity to the network, allowing them to receive part of the returns from the stablecoin's reserves.
Future Plans
BitGo aims to list USDS on major exchanges and reach $10 billion in assets by the end of next year. Despite the rewards system being similar to dividends, Belshe clarified that the rewards are addressed to liquidity providers, not end users, which avoids classification of USDS as an investment contract.
The launch of BitGo's new stablecoin USDS promises significant changes in the stablecoin market, offering a more open and fair reward model for network participants.
Comments