Winklevoss Brothers Launch Ethereum Token …
Winklevoss Brothers Launch USD-Backed Ethereum Token
The New York State Department of Financial Services has approved a request from Gemini Trust to issue its first cryptocurrency token. The Gemini Dollar was released this Monday on the Ethereum blockchain and uses the US dollar as its collateral currency. Forbes writes about it.
Gemini Dollar is designed to provide liquidity to users wishing to transfer US dollars over the Ethereum network. It is “strictly pegged” to the base currency, while the Gemini Trust is responsible for matching between the number of tokens in circulation and the dollars used to back them..
“Until today, there has been no trusted and regulated digital reproduction of the US dollar that could be transferred in an open and decentralized manner like cryptocurrencies,” the Gemini announcement says. “The Gemini Dollar (Ticker: GUSD) combines the credit quality and price stability of the US dollar with blockchain technology and the oversight of US regulators such as the NYS Department of Financial Services.”.
Investment giant State Street will hold the dollars used to secure the Gemini Dollar in FDIC-insured bank accounts, and the token will undergo monthly audits by BPM Accounting and Consulting..
“This isn’t just about Gemini Trust,” said Tyler Winklevoss, CEO and co-founder of Gemini. “It is required to create a network of important players who will be entrusted with solving the problem of trust in stablecoin”.
While State Street will not directly store the cryptocurrency, Winklevoss says a team of more than 150 people worked with the bank over the course of a year to get the required account. “This process involves many checks and barriers,” he said..
The Winklevoss brothers declined to say if anyone has shown interest in their new token at the current stage, but they named decentralized applications running on the Ethereum blockchain, individual traders and financial institutions as potential clients..
Registered users of the Gemini exchange can start converting the dollars in their accounts into Gemini Dollars today. Likewise, they can withdraw the tokens that arrive in their accounts into fiat dollars..
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