Winklevoss Twins’ Gemini Trust Launches Stablecoin Approved by NY Regulator

Gemini, the U.S based Crypto exchange founded by the Winklevoss twins is launching their own Stablecoin which is approved by the New York Department of Financial Services. The stable coin will be similar to Tether but more regulated and can be redeemed for physical dollars in the Gemini exchange.

Gemini wrote on their blog post:

“To date, there has been no trusted and regulated digital representation of the U.S. dollar that moves in an open, decentralized manner like cryptocurrencies. Enter the Gemini dollar — a stable value coin (often called a “stablecoin”)”

The Gemini Dollar is:

•  issued by Gemini, a New York trust company,
•  strictly pegged 1:1 to the U.S. dollar, and
•  built on the Ethereum network according to the ERC20 standard for tokens.

Gemini claims that the Gemini Dollar (Ticker symbol: GUSD) is the world’s first regulated stable coin. More details are mentioned in their Whitepaper.

GUSD is fully audited by multiple firms and the fiat money will be held at a bank in the United States which makes it eligible for “pass-through” insurance from the Federal Deposit Insurance Corporation (FDIC) according to Gemini.

Tether has received criticism for their closed nature and has not been publicly audited or is regulated in any way which has made it a risky option for a lot of investors, it is not clear if the tokens are actually backed by enough dollars. The unique selling point of the Gemini Stablecoin is that it is fully regulated which makes it less risky for investors according to Tyler Winklevoss.

Tyler Winklevoss Tweeted:

Super excited to announce the launch of the Gemini dollar, the world’s first regulated stablecoin! So proud of our amazing team. cc @GeminiDotCom https://t.co/7qUYM2rjtP

— Tyler Winklevoss (@tylerwinklevoss) September 10, 2018

Meltem Demirors commented on the development saying:

so basically we have more tether? feel like USD-collateralized stablecoins are only marginally interesting at best. there are dozens of efforts under way, and i don’t see natural demand for these assets. hope this makes them $$$, because it sounds like it was expensive to print!

There are multiple models of stablecoins like:

Fiat/asset collateralized: TrueUSD, DigixDao (Gold backed), Tether.

Crypto collateralized: MakerDao, havven token.

Algorithm-based: Basis, Carbon.

Also Read:

Premium Luxury Car Dealer to Accept Bitcoin and Bitcoin Cash as Payment Through BitPay

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