The Global Currency Organization (GCO) is launching a new U.S. dollar-backed stablecoin, dubbed the USD Digital (USDD).
The new product was announced in an Oct. 1 news release shared with Cointelegraph.
GCO, a new project led by former employees of JPMorgan, Intel and TrustToken, said that it plans to make the stablecoin model available to a worldwide network of partners, to focus on the possibility for end users to move between cryptocurrencies and fiat.
The San Francisco-based team said that they decided to launch the organization “to focus on bridging the gap between traditional and decentralized finance.” Joe Vellanikaran, CEO of GCO, added:
“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.”
Vellanikaran further stated that thanks to the popularity of stablecoins such as USDC and GUSD, investors are now realizing just how important collateralization in the blockchain space is, adding:
“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.”
European Central Bank's warning
Cointelegraph reported previously that Benoit Coeure, a board member of the European Central Bank (ECB) said that stablecoins could pose a serious risk in relation to public policy priorities, adding:
“Stablecoins are largely untested, especially on the scale required to run a global payment system. [...] They give rise to a number of serious risks related to public policy priorities. The bar for regulatory approval will be high.”