The Global Currency Organization (GCO), a company founded by former JP Morgan, Intel, and TrustToken employees, has announced the launch of a new U.S. dollar-backed stablecoin called USD Digital (USDD). GCO claims all dollars are held by "a third-party trust company."
USDD is an ERC-20 token built on the Ethereum blockchain with attestations of the backing funds provided by Cohen & Co.
The new stablecoin will reportedly provide end users with easier exchange between fiat and cryptocurrencies around the world. According to the official announcement, all applications to participate in the GCO network are open to all financial institutions, exchanges, and apps.
"We set out to make the benefits of blockchain available to all, a vision that is bigger than any one company. We are thrilled to be releasing USDD and opening up the GCO network to institutional partners worldwide," Joe Vellanikaran, the Head of GCO said.
Earlier the European Central Bank (ECB) Board Member Benoit Coeure warned that private stablecoins like Libra are posing big risk to the monetary sovereignty.
Moreover, cryptocurrency exchange Binance in collaboration with Paxos previously also launched the dollar-backed stablecoin based on the Pax Gold blockchain (PAXG) called Binance USD (BUSD).
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