{"id":17072,"date":"2024-09-18T14:19:59","date_gmt":"2024-09-18T11:19:59","guid":{"rendered":"https:\/\/forklog.com\/en\/bitgo-to-launch-yield-bearing-stablecoin-usds\/"},"modified":"2024-09-18T14:19:59","modified_gmt":"2024-09-18T11:19:59","slug":"bitgo-to-launch-yield-bearing-stablecoin-usds","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bitgo-to-launch-yield-bearing-stablecoin-usds\/","title":{"rendered":"BitGo to Launch Yield-Bearing Stablecoin USDS"},"content":{"rendered":"<p>In 2025, BitGo will introduce a dollar-backed stablecoin, USDS. The custodial platform will offer rewards for providing liquidity to the ecosystem, reports <a href=\"https:\/\/www.coindesk.com\/markets\/2024\/09\/18\/bitgo-to-enter-stablecoin-market-with-reward-bearing-usds-coin\/\">CoinDesk<\/a>.<\/p>\n<p>USDS will be backed by short-term US Treasury bills, <a href=\"https:\/\/ru.wikipedia.org\/wiki\/%D0%A1%D0%B4%D0%B5%D0%BB%D0%BA%D0%B0_%D0%A0%D0%95%D0%9F%D0%9E\">overnight REPO transactions<\/a>, and cash.<\/p>\n<p>BitGo plans to list USDS on all major exchanges and expects the token&#8217;s capitalization to reach $10 billion in 2025.<\/p>\n<p>The company positions the asset as the first stablecoin with open participation.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThe main reason for the launch is to create a more open and fair system that fosters innovation and rewards those who build the network,\u201d<\/em> commented BitGo CEO Mike Belshe.<\/p>\n<\/blockquote>\n<p>USDS will stand out among competitors by offering rewards to institutions providing liquidity to the USDS network, through the distribution of a portion of the income generated from reserves.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cAt the end of each month, we generate a certain profit from the cash held in the underlying fund and distribute it to participants on a proportional basis,\u201d<\/em> Belshe explained.<\/p>\n<\/blockquote>\n<p>The publication noted that issuers of similar tokens have excluded the US from available markets due to the potential classification of such a stablecoin as an investment contract.<\/p>\n<p>For this reason, BitGo intends to offer rewards to institutions providing liquidity.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cYou either have those who choose only the American market or those who opt for jurisdictions outside the US, such as <\/em><em>Mountain Protocol<\/em><em> or <\/em><a href=\"https:\/\/forklog.com\/en\/news\/paxos-unveils-5-yield-stablecoin-usdl\"><em>Lift Dollar<\/em><\/a><em> from Dubai,\u201d<\/em> Belshe clarified.<\/p>\n<\/blockquote>\n<p>Back in August, BitGo <a href=\"https:\/\/forklog.com\/en\/news\/bitgo-partners-with-justin-sun-and-tron-to-expand-wbtc-custody\">expanded<\/a> the jurisdictions for storing bitcoin used in Wrapped Bitcoin (WBTC) to Singapore and Hong Kong. This was made possible through a strategic partnership with BiT Global, a firm associated with Tron.<\/p>\n<p>The involvement of Justin Sun in the deal raised certain concerns within parts of the community. MakerDAO participants <a href=\"https:\/\/forklog.com\/en\/news\/makerdao-halts-new-loans-backed-by-wrapped-bitcoin\">approved<\/a> a proposal to halt new loans backed by BitGo-issued Wrapped Bitcoin in WBTC.<\/p>\n<p>On September 12, the cryptocurrency exchange Coinbase launched Coinbase Wrapped BTC (cbBTC) \u2014 a wrapped version of bitcoin (1:1) in the form of an ERC20 token.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In 2025, BitGo will introduce a dollar-backed stablecoin, USDS. The custodial platform will offer rewards for providing liquidity to the ecosystem, reports CoinDesk. USDS will be backed by short-term US Treasury bills, overnight REPO transactions, and cash. BitGo plans to list USDS on all major exchanges and expects the token&#8217;s capitalization to reach $10 billion [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":17071,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[194,807],"class_list":["post-17072","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitgo","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"49","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/17072","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=17072"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/17072\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/17071"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=17072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=17072"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=17072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}