Dubai – [14 November 2023] – Today BIT Exchange announced the listing of Verified USD (USDV), a community-driven stablecoin fully backed by the unrivaled on-chain transparency and stability of a basket of tokenized US Treasury Bills (T-bills). It is a native omnichain stablecoin compatible with the ERC-20 standard, pegged to the equivalent value of 1 US dollar.
USDV’s underlying reserve of tokenized real-world assets (RWA) is a compelling alternative to legacy stablecoins. Apart from a stable value derived from the underlying on-chain T-bills, USDV offers real-time verification through proof-of-reserve, bridging the information gap between stablecoin issuer, verified minters and holders.
USDV is supported by the Verified USD Foundation, a non-profit entity dedicated to nurturing a progressive stablecoin ecosystem that enables equitable value-sharing of benefits among the community of contributors. This is achieved by powering the USDV ecosystem with ColorTrace, a novel value attribution algorithm invented by LayerZero that enables fair and transparent distribution of rewards without dispute for verified minters.
“USDV represents a major evolution in stablecoin technology,” remarked Matthew Commons, President of the Verified USD Foundation. “Unique among stablecoins, USDV enables a collaborative community where those who create value can share in the rewards. The Foundation is excited to work with contributors in unlocking new use cases with real-world impact, backed by unmatched transparency and stability.”
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The Verified USD Foundation has chosen Matrixport’s Short-term Treasury Bill Token (STBT), as its initial underlying reserve asset and over time expects to onboard other high quality tokenized real world assets that diversify the underlying reserve asset pool.
John Ge, CEO of Matrixport said: “Bringing real world assets on-chain will be a major theme for the digital assets industry and we are thrilled that our tokenized treasury offering has been selected as the inaugural reserve asset by the Verified USD Foundation. Under Matrixdock, our branded RWA platform, we have spared no effort to continually enhance STBT’s transparency and responsiveness to meet exacting standards of reliability and security expected by our institutional clients.”
An ERC-1400 standard token, 1 STBT is pegged to 1 USD of net-asset value (NAV), fully backed by ‘risk free’ short-term T-bills with maturities within 6 months and reverse repurchase agreements secured by T-bills. Designed for accredited investors, STBT empowers the USDV community with real-time verification via on-chain Proof-of-Reserves. Launched in February 2023, STBT is the second-leading tokenized T-bill on the Ethereum chain. Additionally, all USDV transactions may be tracked on-chain and available for review on Etherscan. Its open sourced smart contracts have undergone rigorous security audits by third parties such as OtterSec, Zellic.io and Paladin.
ColorTrace, the Bedrock for a Fair Distributed Rewards System
USDV is powered by ColorTrace, a novel value attribution algorithm invented by LayerZero Labs, allowing community participants to transparently and equitably receive rewards for their contributions to the ecosystem. This reward distribution system enables verified minters to mark their tokens in circulation and transparently access rewards derived from on-chain reserves without dispute.
“The ColorTrace algorithm solves the challenge of attribution for fungible tokens,” stated Ryan Zarick, CTO and Co-Founder of LayerZero. “The applications of the ColorTrace algorithm to existing RWA-backed assets - like stablecoins - are exciting and have the potential to create a more fair and equitable distribution across all contributors to an ecosystem’s success.”
USDV is also integrated with LayerZero’s Omnichain Fungible Tokens (OFT) Standard, a widely adopted standard designed for seamless operation across multiple blockchain networks. The stablecoin will initially launch on the Ethereum, BNB Smartchain, Avalanche, Arbitrum and Optimism blockchains, with the technological capability to interoperate across all chains supported by LayerZero (currently 40+).
Industry-leading CeFi and DeFi ecosystem players will support USDV at launch, including:
- Animoca Brands
- Beam by Eco
- BIT Exchange
- Bitget Exchange
- Cactus Custody
- Coin98 Finance
- Curve Finance
- Frax Finance
- Maverick Protocol
- Reunit Wallet
- Stargate Finance
- Term Finance
- Trader Joe
- Velodrome Finance
- Wombat Exchange
- WOO Network
With the backing of these initial contributors and partners of USDV, the Verified USD Foundation aims to onboard more contributors and partners in the coming months to maximize the advantages of a large-scale minter ecosystem, including increased accessibility to USDV across more chains and the development of new use cases on multiple platforms across different networks.
Justin Buitendam, Global Head of Institutional Sales at BIT Exchange said: “BIT Exchange is proud to play a pivotal role in providing institutional investors with access to the groundbreaking stablecoin USDV. With its unique transparency, stability, and real-world asset backing, USDV holds immense potential by shaping the future of tokenization and offering a concrete template for the crypto industry. We firmly believe that stablecoin liquidity could be one of the clearest ways that tokenization intersects with the broader crypto economy as part of the next market cycle. USDV's competitive advantage, distributing rewards for value creators on-chain, is a testament to its innovative approach.”
About BIT Exchange
BIT is a comprehensive cryptocurrency exchange designed for professional use, featuring advanced risk management and fund efficiency supported by Portfolio Margin and Unified Margin. BIT was launched in August 2020 as an affiliate of Matrixport, a prominent crypto financial services company.For more information: visit bit.com or follow BIT on LinkedIn, X, and Telegram.