Palo Alto-based crypto custody firm BitGo has launched a new stablecoin, USDS, that is set to go live in January 2025.<\/p>\n
The company says the stablecoin will be fully backed by U.S. dollars through a mix of short-term Treasury bills, overnight repos, and cash in a bid to ensure liquidity and minimize risk.<\/p>\n
According to a September 18 statement<\/a> from BitGo, its proposed offering will differ from existing dominant stablecoins like Tether (USDT) and Circle\u2019s USDC by employing an open participation model.<\/p>\n That approach will reportedly allow as much as 98% of earnings generated from USDS\u2019s reserves to go to its network participants, including liquidity providers and institutional exchanges. Traditionally, stablecoin returns have mostly gone to issuers or a limited group of stakeholders.<\/p>\n Furthermore, transparency seems to be a key selling point for USDS. BitGo says it will offer real-time proof of reserves, allowing participants to keep an eye on the assets backing it on the platform\u2019s website.<\/p>\n In addition, third-party accounting firms will audit the reserves every month, a move the company hopes will bolster confidence in the stablecoin\u2019s security.<\/p>\n The company aims to list USDS on major exchanges and is setting a target of reaching $10 billion in assets held within the stablecoin by the end of its first year.<\/p>\n While BitGo\u2019s fresh approach may yet pique the interest of users, USDS still faces an uphill task to make any notable impact in the stablecoin space.<\/p>\n For instance, the most recent data from the on-chain analytics platform Token Terminal shows that USDT alone accounts<\/a> for up to 75% of the stablecoin market. Interestingly, just two years ago, its market share stood at 55%. The stablecoin also boasts a market cap of $118.5 billion, which is about $83 billion more than the second-placed USDC.<\/p>\n Despite recent noises from detractors accusing Tether of being a multi-billion dollar fraud, the stablecoin reportedly made upwards of $400 million<\/a> in just the last month alone.<\/p>\n On its part, USDC is also trying to grow its footprint across the globe. On September 17, its issuer announced that the stablecoin will now be linked to real-time payment systems in Mexico and Brazil. The move is intended to make USDC more efficient for cross-border transactions and corporate finances in the two countries.<\/p>\n The post BitGo Introduces USDS Stablecoin, Aiming to Shift Market Dynamics<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Palo Alto-based crypto custody firm BitGo has launched a new stablecoin, USDS, that is set to go live in January 2025. The company says the stablecoin will be fully backed by U.S. dollars through a mix of short-term Treasury bills, overnight repos, and cash in a bid to ensure liquidity and minimize risk. New Approach […]<\/p>\n","protected":false},"author":0,"featured_media":7934,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-7933","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/7933"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7933"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/7933\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/7934"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7933"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7933"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7933"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Implications for the Stablecoin Market<\/h2>\n