The Global Currency Organization (GCO), an institution that uses blockchain technology to expand financial products around the world, released its first product a stablecoin called USD Digital (USDD).
The main goal behind this stablecoin is to provide an institutional-grade virtual currency to everyday traders. This information was released by the GCO a few hours ago in a blog post.
GCO and Trust Token Launch Stablecoin
GCO announced the creation of its first financial product using blockchain technology: a stablecoin. The USDD is a U.S. dollar-backed stablecoin that would provide users with more gateways to move between fiat and cryptocurrencies around the world.
Joe Vellanikaran, the CEO of GCO, commented about this new stablecoin:
“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.”
This new project is being launched by former employees of TrustToken, JPMorgan and Intel. These experts have experience in the financial markets and dealing with stablecoins.
According to the press release informing the creation of this stablecoin, the US dollars that back the stablecoin are held by a third-party trust company. At the same time, GCO intends to share its revenues with participating exchanges, wallet companies and OTC desks.
The organization informs that individuals became more aware of how important is collateralization in the blockchain market.
Vellanikaran explained that with the USDD they are taking the stability and security of a fully-backed stablecoin and opening it up to a global network of partners.
Several stablecoins have been released to the cryptocurrency market in the last few years. Indeed, the second semester of 2018 saw the creation and official launch of several stablecoins that now are some of the most respected ones in the market.
The cryptocurrency exchange Gemini launched the Gemini USD (GUSD). At the same time, Circle announced the creation of the USD Coin (USDC). Other stablecoins include TureUSD (TUSD) and Paxos Standard (PAX).
JPMorgan has also created a stablecoin to use on its blockchain network called Quorum. This virtual currency is called JPM Coin.
Tether (USDT), the most popular stablecoin in the world, has been affected by many controversies during the last few years. Several times, Tether was considered to be used to manipulate Bitcoin price during periods of weak performance for the most popular digital asset.
Despite that, Tether became the largest stablecoin in the market. Nowadays, Tether has a market capitalization of over $4.12 billion.