BitGo Announces Launch of Reward-Backed Stablecoin USDS Set for January 2025
BitGo, a leading crypto infrastructure provider, has revealed plans to introduce a new dollar-backed stablecoin named USDS, set to launch in January 2025. The announcement was made at the Token2049 conference in Singapore, coinciding with BitGo's recent acquisition of a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS).
USDS aims to innovate the stablecoin landscape by implementing a unique reward system that incentivizes liquidity providers. The stablecoin will distribute up to 98% of its earnings to participants who contribute to the ecosystem, promoting a collaborative approach to stablecoin usage.
According to BitGo, the USD-Standard (USDS) seeks to disrupt the current stablecoin market, which is dominated by single issuers like Circle and Tether. “The true value of a stablecoin lies in its community, the liquidity it generates, and the interchange points it facilitates,” said BitGo CEO Mike Belshe, emphasizing the company's commitment to creating a more equitable system that rewards those who build and maintain the network.
USDS will be fully backed by short-duration Treasury bills, overnight repos, and cash, ensuring high liquidity and minimal risk. The stablecoin will also provide real-time proof-of-reserves on its website, supplemented by monthly audits from reputable accounting firms.
BitGo highlighted that USDS will be accessible to a diverse global audience, including individuals, institutions, and DeFi platforms. Eligible participants, such as liquidity providers and institutional exchanges, will be able to register with BitGo to start earning rewards.
The firm anticipates that the distribution of rewards will foster broader adoption and deepen liquidity within the stablecoin ecosystem. BitGo aims to list USDS on all major exchanges and is projecting to reach $10 billion in assets by the end of 2025.
