USDK
Crypto Overview
Overview
USDK is a USD-pegged stablecoin that was launched in 2019 as a collaboration between OKLink and Prime Trust. It operates on the Ethereum blockchain as an ERC-20 token.
Intended Utility
The primary purpose of USDK is to serve as a stablecoin pegged 1:1 to the US Dollar, offering users a way to store value and transfer funds within the cryptocurrency ecosystem while maintaining stable purchasing power. Each USDK token is claimed to be backed by actual USD held in regulated trust accounts managed by Prime Trust.
Actual Usage and Implementation
The actual usage of USDK has been limited compared to other major stablecoins. Trading volumes and market presence have remained relatively low, with most activity concentrated on the OKEx exchange. The token has not achieved widespread adoption across the broader DeFi ecosystem.
Business Model Analysis
The business model involves maintaining USD reserves equal to the amount of USDK in circulation, with Prime Trust acting as the custodian. Revenue is generated through transaction fees and potential interest earned on the reserved funds.
Token Distribution and Governance
USDK is issued and managed by a centralized entity, with new tokens minted when USD is deposited and burned when USD is withdrawn. There is no evidence of founder enrichment schemes, as the token maintains a fixed price and operates under regulatory oversight.
Crypto Impact
To assign a comfort level investing in USDK from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to USDK.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.