🚀 BitGo Announces Yield-Bearing Stablecoin USDS
posted 18 Sept 2024
BitGo is set to launch its own yield-bearing stablecoin, USDS, in early 2025. The stablecoin will be backed by cash and short-duration Treasury bills that generate returns. The initial market capitalization is expected to reach approximately $10 billion within the first year.
The main reason for launching USDS is that, while existing stablecoins serve a good function, we see an opportunity to create a more open and fair system that promotes innovation and, most importantly, rewards those who build the network,said BitGo CEO Mike Belshe.
BitGo plans to distribute a portion of the generated income to ecosystem participants at the end of each month. However, in an effort to avoid regulatory issues, the company will limit profit-sharing to network liquidity providers rather than end users.
Mike highlighted that issuers of yield-bearing stablecoins for general users often face challenges because the U.S. treats such assets as securities. He referenced projects like Mountain Protocol and Lift Dollar, which had to leave the U.S. market due to these regulations.
More breaking news
More breaking news
Breaking news
⚡ ZachXBT Exposes $243 Million Crypto Heist
Breaking news
📣 DZ Bank Introduces Cryptocurrency Services
