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
