Palo Alto-based crypto custody firm BitGo has introduced its new stablecoin, USDS, which will launch in January 2025. 💼

USDS will be fully backed by the US dollar, with short-term Treasury bonds, overnight repo, and cash to provide liquidity and minimize risk.

BitGo will offer 98% of USDS’s yield to network participants, such as liquidity providers and institutional exchanges. This is a different approach than existing stablecoins.

Transparency will be a key selling point for USDS. Participants will be able to view real-time proof of reserves on the platform’s website. Additionally, third-party accounting firms will audit reserves every month.

BitGo aims to list USDS on major exchanges and reach $10 billion in assets in the stablecoin by the end of its first year. 🚀

However, it may be difficult for USDS to make a significant impact on the stablecoin market. USDT holds 75% of the stablecoin market and stands out with a market cap of $118.5 billion.

USDC is also trying to expand its global footprint. Most recently, it was announced that the stablecoin will be connected to real-time payment systems in Mexico and Brazil.