SwissVite Blog post #6: New partnership: USDO
Hey community, we just published an article on our SwissVite Blog. https://swissvite.org/new-partnership-usdo/
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On February the 2nd, Vite Labs announced a strategic cooperation with a stable coin project called USDO.
What is USDO?
USDO is a stable coin, pegged to the USD Dollar with a 1:1 parity.
USDO is a new project, with a simple but efficient way of making this stable coin works: each USDO is backed with an USD in their accounts.
This is pretty much the Tether solution, but the team state that they will conduct regular financial regulatory audits, to insure their funds match the tokens issued on the blockchain.
What is USDO purpose?
USDO is aiming to be a stable coin supported by commercial banks. USDO is providing an onboarding process, where verified users can spend US Dollars to buy USDO, and USDO could be used to buy goods as well as a currency by commercial banks.
Currently, it is possible to trade USDO against mainstream cryptos, as well as transferring USDO tokens. USDO is listed on the exchange
https://bgogo.com/ that has a daily volume close to USD 400 million, according to CoinMarketCap.
How does USDO works?
USDO has built a platform that you can find at USDO.com.
The process is simple: a new user has to pass through a KYC procedure that includes identity and physical address verification. Once done, the user can make a wire transfer to USDO, and receive tokens accordingly within 1 to 3 business days. Reportedly, it also takes 1 to 3 business days to redeem USDO for US Dollars.
USDO is taking a fee on US Dollars withdrawals: 0.1%, with a low cap of USD50.
USDO team is rather exciting! It is composed of young people who have significant experience in big tech companies.
- Figo Zhu, President and Co-Founder, has over 6 years experience as the Director of Regional Sales and Marketing at Shanghai Volkswagen Automotive.
- Dr Jin Han, CEO and Co-Founder, was the Head of Product Safety and Security- at Twitter, and was reportedly responsible for the account safety of more than 1 billion users.
- Alex Wu, CTO and Co-Founder, holds an MS degree in Computer Science from Stanford. He was the Head of the Product Safety Organization at Twitter, Senior Data Architect at Apollo Group, and Engineering Manager in Oracle’s Server Technology Group.
VITE and USDO
The full report about the partnership has not been released yet, but we can guess one big benefit for VITE: Stable coins are crucial for the mass adoption of the blockchain. In order to onboard no-coiners to use any kind of app implying significant transactions, we need stable coins so the value of things is not moving along with the crypto market fluctuations.
VITE could technically build a stable coin on their own, but I believe that it is better to let that to other projects, as there are some regulatory points that make stable coins complex, and better to be handled by specialized teams.
You might also note that VITE cross chain capabilities will most likely make VITE agnostic in terms of stable coins usage. For example, Ethereum ERC20 tokens will be by nature compatible with VITE, so stable coins like Tether and True USD will be usable in the VITE network!
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