Winklevoss Twins launch Gemini dollar stablecoin backed by U.S. currency
The Winklevoss twins announced a new tether product on their Gemini exchange. The token will be known as the Gemini dollar and will be regulated and backed by an FDIC bank.Tweet this
In a Medium post, Cameron highlights some of the reasons for launching the new token outlined how the “stablecoin” will work.
The Gemini dollar (ticker symbol: GUSD) combines the creditworthiness and price stability of the U.S. dollar with blockchain technology and the oversight of U.S. regulators, namely, the New York State Department of Financial Services (NYDFS).
How the Gemini dollar works
The main benefit of a regulated tether option is that the dollars that back the supply of outstanding tokens are regulated by dollars on deposit at an FDIC institution.
Cameron went on to give details about the regular monthly audits that will be conducted, something the competition hasn’t been able to offer.
The U.S dollars that correspond to the Gemini dollars issued and in circulation will be held at a bank located in the United States and eligible for FDIC “pass-through” deposit insurance, subject to applicable limitations. In addition, the U.S dollar deposit balance will be examined monthly by an independent registered public accounting firm to verify the 1:1 peg. All Independent Accountants’ Reports will be publicly available here. Further, the smart contracts underlying the Gemini dollar token have been fully audited and formally verified by an independent security firm, whose report is publicly available here.
You can access the whitepaper for the self-proclaimed “world’s first regulated stablecoin” here.
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