The new stablecoin BitGo reward is backed by short-duration treasury bills, cash, and overnight repos.
Unlike traditional stablecoins, participants will receive up to 98% of the ecosystem’s revenue.
Moreover, the USD- Standard is easily accessible via DeFi platforms and institutions.
The new stablecoin aims to compete with longstanding issuers like Tether and Circle.
BitGo Launches Dollar-Backed Stablecoin
The new coin will launch its stablecoin on September 18, 2024, during the Token2049 event in Singapore.
This announcement follows the Monetary Authority of Singapore’s issuance of its Major Payment Institution License (MPI) to the platform.
The new stablecoin, USD-Standard (USDS), has the backing of the USD and operates a reward system.
BitGo will publicly make its new stablecoin, USDS, available in January 2025.
BitGo describes its USD Standard as an open-participation stablecoin that rewards institutions powering its liquidity.
Moreover, the stablecoin has the backing of short-duration Treasury bills, cash, and overnight repos.
BitGo CEO Mike Belshe noted that the actual value of a stablecoin is the reward and liquidity accrued to users.
He described BitGo as the first platform to create an open-participation stablecoin and said that other exciting stablecoins have yet to reward those who provide network liquidity.
Also, the BitGo CEO believes that awarding rewards to participants would increase the adoption and liquidity of USDS.
Moreover, Belshe mentioned that BitGo created the USDS for an open and fair practice system.
He added that driving innovative ideas is an integral part of BitGo stablecoin.
CEO Belshe stated that the platform’s new stablecoin will be available within and outside the United States.
BitGo rewards participants with a portion of generated returns according to Belshe.
He added that the distributed returns will be based on individual assets.
The proceeds paid to stablecoin participants seem similar to dividends but in the case of BitGo it will be paid to institutions providing liquidity.
The New Coin Makes Changes in Stablecoin Market
In recent times, stablecoins have gained momentum globally.
Moreover, stablecoins act as a bridge between fiat currency and crypto assets.
Platforms like Tether control almost half of ongoing trade volumes involving ether and bitcoin.
The entry of BitGo into the stablecoin market intensifies the competition.
The new coin platform said it would regularly update its participants on reserves.
Also, the firm promised to engage the service of a top-notch accounting firm in its monthly audit.
Meanwhile, BitGo is enlisting its USDS on all major crypto exchanges.
The platform intends to hold assets worth $10 billion by the close of 2025.
Stablecoins are cryptocurrencies backed by assets such as fiat currency or precious metals. They serve as a medium of exchange and address issues involving price stability.
In the world of crypto, stablecoins are a viable trading medium. Moreover, a huge volume of liquidity tunneled to decentralized finance (DeFi) comes through stablecoins.
Vast volumes of stablecoins are pegged to the United States dollar and have been long controlled by issuers like Tether (USDT) and Circle.
