“In 2025, BitGo will launch a dollar-backed stablecoin, USDS. The custodial platform will offer a reward for providing liquidity to the ecosystem, CoinDesk writes. USDS will receive collateral in the form of short-term US Treasury bills, overnight repos and cash. BitGo plans to list USDS on all major exchanges and expects the token’s capitalization to reach $10 billion in 2025. The company positions the asset as the first stablecoin with open participation. “The main reason […]”, — write: businessua.com.ua
In 2025, BitGo will launch a dollar-backed stablecoin, USDS. The custodial platform will offer a reward for providing liquidity to the ecosystem, CoinDesk writes.
USDS will receive collateral in the form of short-term US Treasury bills, overnight repo agreements and cash.
BitGo plans to list USDS on all major exchanges and expects the token’s capitalization to reach $10 billion in 2025.
The company positions the asset as the first stablecoin with open participation.
“The main reason for the launch is to create a more open and fair system that promotes innovation and rewards those who build the network,” commented BitGo CEO Mike Belsche.
USDS will differentiate itself from its competitors by rewarding institutions that provide liquidity to the USDS network by sharing a portion of the income from reserves.
“At the end of each month, we generate a certain return on the cash held in the underlying fund and pass it on to participants on a pro rata basis,” Belsche modeled.
The publication noted that issuers of similar tokens excluded the US from available markets, considering the potential interpretation of such a stablecoin as an investment contract.
For this reason, BitGo intends to offer rewards to institutions that provide liquidity.
“You get either those who choose only the US market, or those who choose non-US jurisdictions, such as Mountain Protocol or Lift Dollar from Dubai,” Belsche explained.
As a reminder, in August, BitGo expanded the storage jurisdictions of Bitcoin used in Wrapped Bitcoin (WBTC) to Singapore and Hong Kong. This became possible after entering into a strategic partnership with Tron-related firm BiT Global.
Justin Sahn’s presence in the deal raised some concerns among some in the community. MakerDAO members approved a proposal to stop issuing new loans backed by BitGo-issued “wrapped” bitcoin in WBTC.
On September 12, the Coinbase crypto exchange launched Coinbase Wrapped BTC (cbBTC) — a wrapped version of Bitcoin (1:1) in the form of an ERC20 standard token.
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