The Winklevoss Twins’ Gemini crypto exchange unveiled the Gemini Dollar (GUSD), a regulated stablecoin. This stablecoin will facilitate people to send and receive U.S. dollars on the Ethereum cryptocurrency network. Fixed-price stablecoins are garnering attention these days. The volatile nature of cryptocurrencies has increased the risks of using them as a means of payment and that’s why fixed-price stablecoins are getting much attention from investors.
Despite facing rejections from the SEC or the sharp downturn in the price of Bitcoin this year, the Winklevoss twins are not letting these reasons from stopping them to launch a new cryptocurrency product. The new stablecoin, Gemini dollar, has been approved by the New York Department of Financial Services. GUSD is aiming to maintain a one-on-one value with the U.S. dollar.
The Gemini crypto exchange launched this stablecoin to bridge the gap between the cryptocurrency market and the traditional banking system. A lot of people have bought digital currencies as an investment, however, they don’t seem to be using them to purchase and sell goods. With this latest move, people will now be able to convert their U.S. dollars into GUSD and vice-versa, and thus move capital around the world.
Tyler Winklevoss said in his statement that it is actually a matter of bringing the U.S. dollars on to the blockchain and thus make them borderless, 24/7. The GUSD rollout came weeks after the Winklevoss’ first-ever Bitcoin ETF proposal was rejected for the second time by the Securities and Exchange Commission (SEC).
Over a period of time, the interest for fixed-price stablecoins, which are pegged to a stable asset such as currency or gold, has been slowly on the rise. Presently, Tether is the largest stablecoin, but it has been facing a lot of criticism of late, as stated in the CNBC report.
The U.S. dollars corresponding to the GUSD issued by the Gemini crypto exchange will be held at a bank located in the United States. The Gemini dollar will be eligible for FDIC “pass-through” deposit insurance and will be subject to limitations that apply. Apart from this, an independent registered public accounting firm will be examining the U.S. dollar deposit balance monthly. The accounting firm will verify the 1:1 peg, as mentioned in the Medium report.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]