According to TechFlow, cryptocurrency custody company BitGo announced plans to launch a dollar-backed stablecoin called USDS in January 2025. The uniqueness of this stablecoin is that it will provide rewards to institutions that provide liquidity.
In an interview with CoinDesk before the Token2049 conference, BitGo CEO Mike Belshe said that USDS will be backed by short-term Treasury bills, overnight repurchase agreements and cash, similar to other stablecoins on the market. But what is different is that USDS is called the first "open participation" stablecoin.
USDS will incentivize institutions that provide liquidity by distributing part of the returns generated by reserves to them. BitGo plans to list USDS on all major exchanges and aims to reach $10 billion in assets by this time next year.
