BitGo, a cryptocurrency manager backed by Goldman Sachs, has announced the release of a new stablecoin called USDS. Its goal is to compete with popular coins like Tether and Circle.
USDS was announced on September 18 and will go live in January 2025. It will have a unique rewards system that will give network members up to 98% of the earnings. USDS is backed by short-term Treasury bills, overnight repos, and cash. It is tied to the U.S. dollar.
BitGo New York Trust
It will be given out by the BitGo New York Trust Company, a company that was set up legally in 2021. In standard stablecoins, the issuers keep the interest earnings. But USDS will share earnings with institutions, exchanges, liquidity providers, and users who help the ecosystem.
To get rewards, people must sign up with BitGo and prove their addresses. Rewards will be sent out every month based on the amount of USDS that is in custody. Pay will depend on how much cash you contribute, and rewards will be decided using a revenue-sharing plan.
A company also wants to make it easier to mint and burn USDS. Users who have been approved will be able to mint and burn USDS with USD, USDC, or USDT for free. A company will pay all the fees. BitGo advertised itself as a rival to other stablecoins, but it made a point of stating that it would not affect the market in any way.
“BitGo doesn’t compete with other market participants as an exchange. Instead, we plan to further incentivize growth and adoption of the entire ecosystem.”
