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

BitGo Unveils New Stablecoin USDS at Token2049

user avatar

by Giorgi Kostiuk

2 years 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 novel dollar-backed stablecoin named USDS next year. The stablecoin promises to differentiate itself from existing options by introducing innovative incentives for liquidity providers.

    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. However, the company is positioning USDS as an open-participation stablecoin. Unlike its predecessors, USDS 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, BitGo CEO

    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, BitGo CEO

    Recent Developments and Risks

    Amid these exciting announcements, BitGo faces scrutiny and potential challenges. Last August, a proposal 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 continues to innovate in the stablecoin space with the launch of USDS, aiming to attract liquidity providers and build a more fair and open ecosystem. However, some stakeholders are concerned about potential risks associated with the involvement of prominent figures.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Ethereum Price Recovery Attempts Amidst Resistance Levels

chest

Ethereum price is attempting to recover above key support and resistance levels, facing challenges at 2,320.

user avatarNguyen Van Long

Clarity Act Debate Intensifies Concerns Over XRP and RLUSD

chest

The controversy surrounding Ripple and RLUSD is linked to the Clarity Act and digital asset legislation in the U.S.

user avatarSatoshi Nakamura

Ripple, XRP, and RLUSD Face Banking Industry Opposition

chest

A controversy has emerged as crypto commentator Pumpius claims that major banking groups are lobbying against legislation that could strengthen Ripple's stablecoin ecosystem, raising concerns about the impact on traditional bank deposits.

user avatarJesper Sørensen

Ric Edelman Proposes New 80/20 Investment Strategy for Retirement

chest

Ric Edelman proposes a new 80/20 investment strategy for retirement, emphasizing the importance of keeping 80% in equities and growth assets, including at least 10% in cryptocurrencies.

user avatarRajesh Kumar

Ric Edelman Predicts Bitcoin Could Surpass $150,000

chest

Financial adviser Ric Edelman predicts Bitcoin could exceed $150,000 by the end of 2026, driven by institutional investment and regulatory changes.

user avatarLucas Weissmann

Solana Breaks Out of Long-Term Descending Channel

chest

Solana has successfully broken out of a long-term descending channel, marking a significant structural shift in its price action.

user avatarFilippo Romano

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.