New Stablecoin Proposed by Former TrustToken, JP Morgan, IBM Team Members
The USDD stablecoin will unite a global group of investors, adding to the selection of dollar-pegged assets.
A new stablecoin may soon arrive on the scene, to compete with already existing dollar-pegged assets. USD Digital was proposed at the beginning of October, and will be issued and run by the Global Currency Organization (GCO).
USDD boasts of being an “institutional-grade stablecoin”, aiming at a global network to allow moving between fiat and crypto assets. The GCO also works on a revenue-sharing platform, to propose incentives to exchanges, wallets, and OTC desks that adopt USDD.
“We are excited to introduce a stablecoin that is providing an institutional-grade digital currency to everyday traders,” said Joe Vellanikaran, CEO of GCO. “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.”
USDD will complete with already fully compliant stablecoins like USDC, Paxos Standard (PAX), Gemini USD (GUSD), and the original TrueUSD (TUSD). Those coins have a relatively small market share compared to Tether (USDT), but are widely adopted across exchanges.
USDD will use attestations by Cohen & Co., the same group that produces attestations for TUSD. The coin also plans to be fully backed by US dollars.
The newly minted coin will exist on the Ethereum (ETH) network. This poses both a risk an an opportunity. As an ERC-20 token, USDD would be suitable and compatible with existing decentralized finance schemes and smart contracts based on Ethereum. But the asset is also at risk because of the potential congestion on the network. USDT has already faced higher fees due to Ethereum network congestion.
Fully-backed stablecoins are sometimes used to liquidate USDT funds. Some coins, like USDC, have grown their supply significantly, while GUSD has seen significant outflows due to token burns.