The past year has seen the launch of a number of new stablecoin projects, all looking to take market share away from controversial market leader Tether (USDT). The competitive pool looks to be getting even more crowded as a new project is looking to upend the traditional stablecoin model.
Global Currency Organization, which was founded by alumni of JPMorgan (JPM), Intel (INTC) and TrustToken, announced the release of a new US dollar-backed stablecoin called USD Digital (USDD) today.
According to a press release shared with us, GCO plans to make USDD the first stablecoin to share its revenue from its various operations with participating exchanges, wallet companies and OTC desks.
“We are excited to introduce a stablecoin that is providing an institutional-grade digital currency to everyday traders,” said GCO CEO Joe Vellanikaran. “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.”
GCO hopes to bridge the gap between traditional and decentralized finance with USDD, which will initially exist as an ERC-20 token. USDD is fully backed by US dollars and redeemable through the GCO website, with attestations of the backing funds provided by Cohen & Co, notes the project.
“With the rise of stablecoins such as USDC and GUSD, traders became aware of the importance of collateralization in the blockchain space,” added Vellanikaran. “With USDD, we are taking the stability and security of a fully-backed stablecoin and opening it up to a global network of partners. This is the next evolution of the stablecoin industry.”
The stablecoin market is now worth more than $5 billion with the most recent addition before USDD being a USD-backed stablecoin called BUSD, which is managed by Binance and the Paxos Trust Company.