Digital asset custodian BitGo is set to challenge the stablecoin market dominance of Tether’s USDT and Circle’s USDC with the launch of its new product: “The USD Standard (USDS) stablecoin,” in January 2025.
In a recent press release, BitGo claimed it wants to address the current stablecoin market’s tendency to prioritize profits over ecosystem growth by redistributing rewards to a broad network of participants, potentially fostering greater adoption and enhancing liquidity. Its new offering aims to revolutionize the market by introducing a unique reward system that prioritizes fairness, transparency, and broad participation.
According to BitGo, unlike traditional stablecoins that primarily benefit issuers or select partners, USDS will distribute up to 98% of its earnings to participants within its ecosystem. This new approach is designed to incentivize a diverse range of stakeholders, including institutions, exchanges, liquidity providers, and users, fostering a more balanced and inclusive network.
The U.S.-based firm stated that its vision for USDS centres on market neutrality and inclusivity. It claimed that a successful stablecoin requires widespread network participation and equitable reward distribution.
USDS will be fully backed by short-duration T-bills, overnight repos, and cash, ensuring high liquidity and low risk. Bitgo noted that it will issue the stablecoin in adherence to regulatory compliance standards. It also claimed that transparency is a key feature, and it will provide real-time proof-of-reserves available a dedicated platform (usdstandard.com) and monthly audits conducted by leading accounting firms.
The stablecoin will be globally accessible and support quick and simple conversion from USD, USDC, and USDT without the associated fees.
BitGo also encouraged eligible participants to register to start earning rewards based on their contributions to the USDS network.
Meanwhile, this announcement comes on the heels of a significant milestone for the firm. It recently acquired the Major Payment Institution License from the Monetary Authority of Singapore. This licence permits BitGo to provide regulated digital payment token services to residents. This strategic move further cements BitGo’s position as a key player in the digital asset space, setting the stage for the successful introduction of USDS.
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