BitGo, an American cryptocurrency custody company, recently stated at Token 2049, a large global Web3 exhibition in Singapore, that it will launch a new stablecoin USDS linked to the US dollar in January 2025, and will provide incentives for institutions that inject liquidity into USDS.
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ToggleAnother new stablecoin, USDS, is expected to have an issuance of US$10 billion.
According to CoinDesk , BitGo CEO Mike Belshe said that the new stablecoin USDS is backed by short-term U.S. debt, REPO (with a repurchase agreement) and cash. He emphasized: "The most important thing is to reward those who build stablecoins. This is the main reason for launching USDS."
Belshe also said that the real value of stablecoins comes from those who are "willing to and actually use it". They provide "liquidity" and "access points" for transactions. He plans to list USDS on all major exchanges. It is expected that in September 2025, assets held in USDS will reach 10 billion US dollars.
BitGo's stablecoin USDS hopes to reward those "institutions that provide liquidity for USDS", and BitGo will also allocate part of the income from reserve assets (short-term treasury bills, cash) to these institutions. Belshe added: "At the end of each month, we will return the same proportion to participating institutions based on the proportion of cash support they provided for USDS."
(There have also been stablecoins that distributed institutional rewards in the past – USDV: a model of stablecoins with full-chain transparency )
The U.S. SEC regulates the crypto industry very strictly, and income-generating stablecoins cannot enter the market.
Belshe said that some stablecoin projects have launched stablecoins with income functions to allow users to earn rewards.
However, the US Securities and Exchange Commission (SEC) has recently regulated cryptocurrencies very strictly. Any cryptocurrency products with investment returns or similar income mechanisms will be regulated as securities, and of course these stablecoins will also be regulated. And he also said: "You can only choose to join only the U.S. or non-U.S. markets. For example, Mountain Protocol and Lift Dollar choose to join the non-U.S. market, because as long as they operate in the United States, they are immediately treated as securities."
