BitGo Launches USDS Stablecoin, Introducing Unique Liquidity Incentives

News

Bitgo Initiates Mt. Gox Repayments: $2 Billion Bitcoin Move Signals Relief for Creditors

  • BitGo’s USDS stablecoin will be backed by Treasury bills, overnight repos, and cash, offering stability.
  • Liquidity providers contributing to USDS will receive returns from the stablecoin’s reserves, encouraging network growth.
  • USDS offers easy access from USD, USDC, and USDT, with no conversion fees for global participants.

In a recent update, BitGo shared its plan to debut a new stablecoin USDS backed to the US Dollar during the Token2049 event in Singapore. As per the announcement, the stablecoin will vary from other available stablecoins in the market with some new features for providers.

USDS Backing and Liquidity Incentives

USDS will be backed by short-term Treasury bills, overnight reports, and cash, aligning with the practices of other stablecoins. However, BitGo is positioning the USDS stablecoin as an exceptional offering in the market by emphasizing its open participation framework.

According to the company’s press release on September 18, the stablecoin will allow institutions and participants to contribute liquidity to its ecosystem while being rewarded for their participation.

Unlike traditional stablecoins, BitGo’s USDS will distribute returns generated from its reserves to liquidity providers. The incentive structure will be based on the size of the contributions made by institutions, offering an additional financial benefit for joining the network.

CEO’s Perspective on USDS

BitGo CEO Mike Belshe explained the motivation behind the USDS launch, stating that while existing stablecoins fulfill an essential role in the ecosystem, BitGo sees an opportunity to create a more open and equitable solution. He highlighted the platform’s ability to reward participants who help grow the network and contribute liquidity.

Additionally, the USDS platform will provide seamless entry for institutions, individuals, and decentralized finance (DeFi) participants with easy onramps from USD, USDC, and USDT, all without conversion fees. This approach is designed to make participation more accessible and financially beneficial.
While BitGo continues to advance its new stablecoin, the company is also facing scrutiny over its Wrapped Bitcoin (WBTC) operations. A recent proposal by BA Labs suggested changes to minimize WBTC exposure, particularly as BitGo shifts its custody arrangements from the U.S. to Singapore and Hong Kong.

The post BitGo Launches USDS Stablecoin, Introducing Unique Liquidity Incentives appeared first on Crypto News Land.

Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0

PRC Comment Policy

Your comments MUST BE constructive with vivid and clear suggestion relating to the post.

Your comments MUST NOT be less than 5 words.

Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.

Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.

Constructive REPLY to comments is allowed

Leave a Reply