USDK
Crypto Overview
Overview
USDK is a USD-pegged stablecoin that was launched in 2019 through a partnership between OKX (formerly OKEx) and Prime Trust, a Nevada-based trust company. The stablecoin is designed to maintain a 1:1 peg with the US Dollar.
Intended Utility
The primary purpose of USDK is to serve as a stable medium of exchange and provide a bridge between traditional fiat currency and digital assets. It aims to facilitate trading, payments, and transfers within the cryptocurrency ecosystem while maintaining price stability.
Business Model & Implementation
USDK operates on the Ethereum blockchain as an ERC-20 token. Each USDK token is reportedly backed by an equivalent amount of USD held in reserve by Prime Trust. The reserves are said to be regularly audited to ensure proper backing.
Actual Usage & Adoption
The token's primary use has been predominantly within the OKX ecosystem, where it serves as a trading pair and settlement currency. However, its adoption outside the OKX exchange has been limited compared to other major stablecoins.
Token Distribution & Governance
USDK is issued and managed through a partnership between OKX and Prime Trust. New tokens are minted when USD is deposited into the reserve account, and tokens are burned when USD is withdrawn. This maintains the 1:1 peg mechanism.
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.