The Global Currency Organization (GCO) – an outfit founded by JP Morgan alumni, Intel, and TrustToken, has launched a new stablecoin christened USD Digital (USDD).
In a press release shared by a media outlet, the organization intends to make USDD the first stablecoin that will share its revenue from various operations with participating parties, such as wallet companies, exchanges, and OTC desks.
In what may seem like stiff competition for Tether (USDT), which is currently the market leader, many stablecoins are coming up especially in the past year. With the launch of USDD, the already competitive pool for stablecoins looks even more crowded.
Commenting about the launch, GCO CEO Joe Vellanikaran said:
“We are excited to introduce a stablecoin that is providing an institutional-grade digital currency to everyday traders…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 Bridging the Gap
The Global Currency Organization aims to use the USDD to close the gap between traditional and new age decentralized finance. The new stablecoin will be available as an ERC-20 token, operating on the Ethereum blockchain. Besides, the coin is fully backed by the U.S. dollar and can be redeemed through the GCO website, with evidence of the backing funds provided by Cohen & Co.
The GCO official further added that the rise of stablecoins including GUSD, USDC, and soon-to-be-launched Facebook-allied Libra, traders would realize the benefit of collateralization in the blockchain space.
“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,” Vallenikaran said.
Currently, the stablecoin market is worth more than five billion US dollars with the recent addition – BUSD, a dollar-backed stablecoin managed by Binance and the Paxos Trust Company. Following its launch, USDD is going to be the newest kid on the block.
Featured Image: Medium