Cryptocurrency custodian BitGo has just announced that it intends to launch a new stablecoin called USDS next year, standing out in a crowded market by offering rewards to institutions that contribute liquidity to the network.
This stablecoin, which will be backed by short-term Treasury bills, overnight repos and cash like other stablecoins, will be the first with open participation.
BitGo CEO Mike Belshe says the company has made the decision to issue USDS because it sees an opportunity to create a fairer, more inclusive system that incentivizes network creators and promotes innovation.
BitGo's offering will stand out among its competitors because of its rewards-based model. This system rewards institutions that contribute liquidity to the USDS network by distributing a portion of the profits generated by their reserves.