Hong Kong-based cryptocurrency exchange OSL Group (0863) said on Thursday that it is launching a new U.S. dollar stablecoin to be issued by federally chartered crypto bank Anchorage Digital.
The USDGO token is designed to be used for 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 compliant, USD-denominated digital assets.
The news comes as stablecoins – a subset of cryptocurrencies whose prices are pegged to fiat currencies such as the U.S. dollar – are growing rapidly around the world as regulations are introduced. Currently, the asset class size of stablecoins is $300 billion, and Citi predicts that stablecoins will 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 the Asian digital asset market, the choice to issue USDGO through a U.S. bank reflects the growing importance of the U.S. market after the GENIUS Act was signed into law regulating the stablecoin industry.
“Enterprises want faster settlements, cheaper transactions and global coverage without compromising compliance,” OSL Group CEO Kevin Cui said in a statement. “Anchorage Digital is the only federally regulated stablecoin issuer in the United States, allowing us to offer products that meet these needs with the most stringent regulatory posture in the market.”
Read more: Anchorage Digital plans to pay ‘rewards’ on Ethena tokens under GENIUS Act
