TechFlow news: Cryptocurrency custodian BitGo announced plans to launch a dollar-backed stablecoin called USDS in January 2025. The unique feature of this stablecoin is that it will reward institutions providing liquidity.
Speaking to CoinDesk ahead of the Token2049 conference, BitGo CEO Mike Belshe said USDS will be backed by short-term U.S. Treasuries, overnight repo agreements, and cash—similar to other stablecoins on the market. However, USDS is distinct in being dubbed the first "open participation" stablecoin.
USDS will incentivize institutions providing liquidity by distributing a portion of the returns generated from its reserves. BitGo plans to list USDS on all major exchanges and aims to reach $10 billion in assets under management by this time next year.
