In a blog post today, Cameron and Tyler Winkelvoss, co-founders of Gemini Trust, revealed the launch of a new stablecoin: the Gemini Dollar.
According to the two brothers, the Gemini dollar will be issued by Gemini, a New York trust company and the stablecoin will be built on the Ethereum blockchain platform using the ERC20 standard.
The Gemini dollar (GUSD) is said to “combine the creditworthiness and price stability of the US dollar with blockchain technology and the oversight of U.S. regulators, namely, the New York State Department of Financial Services (NYDFS).”
As of today, Gemini users may now convert US dollars in their account into Gemini dollars and withdraw them to an Ethereum address. Users may also convert Gemini dollars into US dollars by depositing them into their Gemini account.
The Gemini dollar claims to be the worlds first “regulated stablecoin.”
Gemini notes that multiple stablecoins already exist, including coins pegged to the US dollar, but point to questions regarding their viability;
“Several implementations of fiat-pegged stablecoins have been proposed, however, they all lack some combination of supervision, transparency, and examination . As a result, doubts surrounding their solvency persist, as do concerns regarding the systemic risks they pose.What is needed is a stablecoin that people can trust. In this paper, we propose the Gemini dollar, a regulated stablecoin that combines the creditworthiness and price stability of the U.S. dollar with the technological advantages of a cryptocurrency and the oversight of US regulators.”
Gemini believes the benefits to a regulated stablecoin are evident in the fact that while “cryptocurrencies operate 24/7/365, fiat currencies only operate during specific “business hours” — a fundamental mismatch.”
Have a crowdfunding offering you'd like to share? Submit an offering for consideration using our Submit a Tip form and we may share it on our site!