A team of former employees from JPMorgan, Intel and TrustToken have announced the launch of USD Digital (USDD), a new dollar-backed stablecoin that will offer revenue sharing for institutions.
Revenue Sharing Stablecoin
Global Currency Organization (GCO), the company behind the new USDD token, aims to bring an innovative approach to stablecoins by providing revenue sharing for institutions that use the coin. The company is using a fifty-fifty revenue sharing model which it believes will incentivize adoption with exchanges, traders and businesses looking to use a stable crypto-asset.
Joe Vellanikaran, CEO of Global Currency Organization, thinks USDD provides institutions and traders with more options,
It’s the best of both worlds. They get the stablecoin, and they get the revenue that GCO shares with them.
Vellanikaran, who previously worked for TrustToken on the TrueUSD token, says that stablecoins provide value for institutional investors and individuals, particularly in the movement of money across markets.
He explained in an interview with CoinDesk,
Let’s say you’re a Japanese student living in the U.S. and you want your parents to send you funds. With the current process, you’d either need a U.S. bank account or be subjected to long delays and conversion fees. With our stablecoin, you should be able to receive your funds in a matter of days.
Vellanikaran believes there will be a global shift to blockchain-based currencies over the next decade or two.
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