BitGo to Launch Reward-Bearing USDS Stablecoin in 2025

In Brief:

BitGo plans to launch a dollar-backed stablecoin called USDS in January 2025, offering rewards to institutions that provide liquidity to the network.

The USDS stablecoin will be backed by Treasury bills, overnight repos, and cash, and aims to differentiate itself with a rewards-based approach for liquidity providers.

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BitGo to Launch Reward-Bearing USDS Stablecoin in 2025

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BitGo, a prominent digital asset trust company, is set to enter the stablecoin market with the launch of its USDS stablecoin in January 2025. This dollar-backed stablecoin aims to stand out in a competitive market by offering rewards to institutions that provide liquidity to its network.

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Rewards-Based Approach for Liquidity Providers

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The USDS stablecoin will be backed by short-duration Treasury bills, overnight repos, and cash, similar to other stablecoins. However, BitGo's offering will differ by distributing a portion of the returns generated from its reserves to liquidity providers on a pro-rata basis. This approach seeks to incentivize institutions to contribute to the network's liquidity and foster a more open and fair system.

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CEO Mike Belshe emphasized the importance of innovation and rewarding those who build the network, stating that the true value of a stablecoin comes from its users and liquidity providers. By targeting $10 billion in assets held within the stablecoin by next year, BitGo plans to list USDS on all major exchanges, further expanding its reach in the stablecoin market.

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