The Winklevoss brothers are at it again. This time not with an ETF but with a stable value coin commonly referred to as a stablecoin. This comes at a time when the financial department of the New York state, the NYDFS backs another U.S dollar-pegged stablecoin.
The Gemini dollar, as its founders observed, has the capability of fixing the flaws experienced by other coins claiming to have a 1:1 ratio to the U.S dollar.
“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,” read a section of a blog post on Gemini’s official Medium page.
Gemini dollar with have the symbol GUSD and the Winklevoss twins indicate that it is ‘strictly pegged 1:1 to the U.S dollar.’
Gemini’s stablecoin is built on the ethereum blockchain within an ERC20 standard. The GUSD, as Gemini noted, incorporates both the ‘creditworthiness’ of the U.S dollar and the oversight of financial regulators in the United States with the blockchain technology.
The 1:1 ratio will be supervised monthly by an “independent registered public accounting firm and all auditing reports made public.
Apart from Gemini, Paxos, a blockchain startup, has launched another stablecoin called Paxos Standard and which has a regulatory green light from the New York Department of Financial Services (NYDFS). The Paxos stablecoin also claims to be “fully backed by the U.S dollar,” reported Coindesk. The main aim of the new coin from Paxos is to offer cryptocurrency traders fiat in digital form. Paxos is already SEC compliant
As with Gemini’s stablecoin, Paxos Standard will also utilize the power of the ethereum blockchain where it is an ERC20 token. Being ERC20 tokens, the two coins can be sent over an ethereum address of choice.
Even as the NYDFS backs another U.S dollar-pegged stablecoin, do you think there is a void in the crypto space that only stablecoins can fill?
Let us know your thoughts in the comments section below.