Brothers Winklevoss Launch First-Ever Adjustable Stablecoin
On September, 10 New York cryptocurrency exchange Gemini Trust announced to launch its own stablecoin.
Gemini Dollar (GUSD), which pegged to the US dollar in a ratio 1: 1 , will be the world's first regulated stablecoin and will allow users to send and receive U.S. currency through the ethereum network using ERC20 tokens.
In its blog, the Gemini team wrote that its "dollar" will combine "the creditworthiness and price stability of the US dollar with blockchain technology and control by US regulators, namely, the New York Department of Financial Services (NYDFS)".
At the end of August, in an interview with MarketWatch CEO Gemini Trust, Tyler Winklewoss, said that the plans for stablecoin creating were ripe for a long time and that its launch was a long process, requiring a comprehensive legal assessment and business negotiations.
Stablecoin are gaining popularity among supporters of decentralized technology, as mitigated by some of the shortcomings of the cryptocurrency, including volatility. Tyler Winklewoss called this type of asset "the missing link between the traditional banking system and cryptoeconomics."
In press release, the superintendent of the New York Department of Financial Services, Maria T. Woollo, said:
As the financial technology market develops, New York seeks to develop innovation, also ensuring their responsible growth. The approval of such innovations shows that companies can really bring positive changes in our lives and adhere to strict standards of compliance with the state regulatory framework, which is designed to protect consumers and business.
It is worth noting that the company of twins Winklewoss fully met the conditions of NYDFS, related to countering money laundering and fraud, as well as protecting consumer rights.
The storage of U.S. dollars is assumed by State Street Bank, and the balance sheet will be checked monthly by consulting company BPM.
Recall also that a month ago the SEC rejected the offer of the Winklewoss brothers to launch Bitcoin-ETF.