The Global Currency Organization (GCO) is releasing a new dollar-backed stablecoin which is designed to share its revenue with the institutions that use it, the company announced in a press release on 1 October.
Led by former employees of J.P. Morgan, Intel and TrustToken, the new stablecoin, dubbed the USD Digital (USDD) token, is designed to be used by exchanges, traders and OTC desks that wish to have a stablecoin product but are unwilling to develop one.
The team behind the new stablecoin said that the aim of the organization is “bridging the gap between traditional and decentralized finance”.
GCO’s 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 uses the Ethereum blockchain in order to provide users with transparency, and aims to incentivize adoption through its novel fifty-fifty revenue sharing model.
Vellanikaran, who first began working on stablecoins at TrustToken, said that investors have started to realize how important collateralization on the blockchain is, thanks to the recent popularity of other stablecoins.
He further added:
“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.”
Last week, during a hearing of the Committee on the Digital Agenda in the German parliament, Benoit Coeure, ECB board member, said that some stablecoin projects could help solve key issues currently present in global payment systems.
He also said that a new approach will be needed in order to regulate this new product.