Former JPMorgan, Intel staff launch USD-backed stablecoin with a twist

Stablecoins • October 2, 2019, 4:50AM EDT

Former employees of JPMorgan, Intel and TrustToken have launched a new USD-backed stablecoin with a revenue-sharing model twist.

Dubbed USD Digital (USDD), the stablecoin has been launched by Global Currency Organization (GCO), which plans to share its revenues with participating exchanges, wallet providers and over-the-counter or OTC desks.

“Currently, all fiat-backed stablecoin projects earn revenue from the funds that back their token (funds that earn interest from the trust company), keeping 100% of the revenue,” GCO told The Block, adding that it is “flipping this model upside down,” by sharing its revenue with an open network of institutional partners.

The firm stressed that stablecoins and the cash backing them are not revenues.

The USDD stablecoin is an ERC20 token built on Ethereum and is “fully backed” by US dollars, GCO said, adding that accounting firm Cohen & Co. provides attestations of the USD backing.

The firm further said that USDD is its first stablecoin, indicating that it could launch more stablecoins in the future.

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Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.