What is USDS Coin?
USDS Coin is designed as a multichain US Dollar stablecoin, allowing for 1-to-1 minting and redemption with USD or other regulated stablecoins like USDC.
The coin, by Stably, marks a significant development for the company and is set to relaunch in November 2023. Also known as USDS Token or Stably USD, it retains its original name and symbol but with revamped features.
The collateral backing USDS will be securely held in bank deposits, money market instruments, or USDC, safeguarded by either Bridge, a regulated partner, or Stably’s own statutory trust in Wyoming.
To ensure transparency and trust, independent attestations will periodically verify that each USDS token in circulation is fully collateralized.
What Were USDS Tokens?
Before this reimagining, approximately 2.2 million USDS tokens existed across various blockchain networks under the moniker ‘Stably USD Classic’ (USDSC). These tokens were issued on platforms like Arbitrum, BNB Chain, and Ethereum, among others.
The transformation from USDS to USDSC came in the wake of issues with Prime Trust, a former custodian that faced bankruptcy.
Stably is actively coordinating to return collateral assets to USDSC token holders, including those holding white-labeled versions of the stablecoin.
Who Are Stably?
Stably, the entity behind USDS, exists within the stablecoin domain and is primarily known for their Stably Ramp — a non-custodial stablecoin and fiat on/off-ramp widget; they provide an interface for global users across over 170 countries.
Stably Ramp supports diverse payment methods like Fedwire, ACH push, credit/debit cards, and USDC.
With competitive transaction fees as low as 0.5%, Stably has positioned itself as a key player in the crypto-fiat conversion space, offering support for an expanding range of digital assets.
The recent turmoil involving Prime Trust, their former custodian, led to a temporary suspension of services.
Nevertheless, Stably has demonstrated resilience by partnering with Bridge, a US-based registered money service business, and establishing a statutory trust in Wyoming.
These moves are part of Stably’s overarching mission to empower the following billion Web3 users with innovative stablecoin and fiat onramp infrastructure.
The relaunch of the USDS Token by Stably may be a significant step in the stablecoin market, showcasing the company’s commitment to innovation and user trust.
The new USDS Token, designed to be a secure, transparent, and versatile digital currency, reflects Stably’s dedication to providing reliable and user-friendly financial solutions in the blockchain space.
The transition from USDS to USDSC, due to the complications with Prime Trust, highlights the challenges and dynamics within the cryptocurrency custody sector.
However, Stably’s proactive approach to handling the situation, ensuring the safety of user assets, and re-establishing trust through new partnerships and transparent operations, speaks volumes about their resilience and customer-centric ethos.
Stably’s journey, marred by the challenges with Prime Trust but buoyed by its quick recovery and strategic partnerships, is a testament to the evolving and adaptive nature of the cryptocurrency industry.
With its global reach, competitive fees, and a renewed focus on security and compliance, Stably is poised to continue as a key player in bridging the gap between traditional finance and the burgeoning world of digital currencies.
In conclusion, the USDS Token’s relaunch represents a recovery from a challenging phase and a stride forward in the stablecoin sphere.
With its strong foundation, innovative approach, and commitment to security and compliance, Stably’s USDS Token aims to be a significant player in the global cryptocurrency market, powering transactions and opening new avenues for digital finance.