coindesk.com
Hong Kong-based cryptocurrency exchange OSL Group (0863) is issuing a new U.S. dollar stablecoin with issuance handled by federally chartered crypto bank Anchorage Digital, the firms said on Thursday.
The USDGO token is aimed for use in cross-border payments, treasury operations and on-chain settlements, the press release said. It will be backed one-to-one by liquid U.S. dollar assets including U.S. Treasuries, and built with embedded compliance features such as know-your-customer (KYC) checks and anti-money laundering (AML) protocols.
The token will also support issuance on multiple blockchains, targeting enterprise users looking for a compliant, dollar-denominated digital asset.
The news comes as stablecoins, a subset of cryptocurrencies with prices anchored to fiat money like the U.S. dollar, are rapidly growing globally as regulations are being put in place. Currently a $300 billion asset class, Citi projected stablecoins to become a $1.9 trillion to $4 trillion market by 2030, increasingly used for payments and cross-border transfers.
While OSL has deep roots in Asia’s digital asset markets, the choice to issue USDGO through a U.S. bank reflects the growing importance of the U.S. market after signing the $GENIUS Act into law to regulate the stablecoin sector.
"Businesses want faster settlement, cheaper transactions and global reach without compromising on compliance," OSL Group CEO Kevin Cui said in a statement. "Anchorage Digital — the only federally regulated stablecoin issuer in the United States — allows us to deliver a product that meets those demands with the strongest regulatory posture in the market."
Read more: Anchorage Digital Aims to Pay 'Rewards' on Ethena's Tokens Under $GENIUS Act