USDD Looks to Shake Up Stablecoin Model

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USD Digital (USDD) might look like just another entrant into the stablecoin beauty contest,
but it promises something different, as suggested by its tag line as “the next generation of stablecoins”. Given the plethora of stablecoins on the market at the moment it really takes something to stand out from the crowd, and USDD creators Global Currency Organization (GCO) think they have done just that.

Institutional Customers Set to Benefit

USDD is firmly pitched at the institutional user, which is clear from the outset, with the homepage calling the token “an institutional-grade stablecoin for all”. The token, backed by US dollars “held by a third-party trust company”, is intended to be used by everyone in the crypto space, from casual traders to institutional OTC desk operators, although it is institutions that will benefit the most, as GCO plans to “share its revenues with participating exchanges, wallet companies, and OTC desks.” The token also offers participation in a global liquidity API, which the founders say will allow institutions the ability to offer deeper markets to users. Aside from this revenue sharing, the usual standard features apply, such as a fiat on/offramp, fast settlement, and a proprietary wallet. The token will initially operate on Ethereum’s ERC20 platform, taking advantage of the tried and tested platform, although a move to a faster blockchain can be envisaged if the token takes off as planned.

Standing out in a Crowded Market

Unlike some other crypto projects, the team behind USDD has real experience at the cutting edge of blockchain technology. GCO was founded by Joe Vellanikaran, former General Manager at TrustToken, creators of the TrueUSD (TUSD) stablecoin. Clearly Vellanikaran’s ten months running business operations at TrustToken was enough to make him see the potential in an institutional stablecoin, and it can be imagined that the USDD will be the first of a number of GCO projects aimed at crypto institutions as the space expands. With the amount of stablecoins already on the market, and more coming from the likes of Binance, it is becoming harder and harder to stand out in such a crowded market, but Vellanikaran and GCO are pinning their hopes on a growing institutional desire which, as we’ve seen from Bakkt’s slow start, may not be coming quite as soon as we expected.