Gemini Trust Gets Approval for Stablecoin

Gemini Trust Company, the cryptocurrency exchange owned by Tyler and Cameron Winklevoss, launched the Gemini dollar on Monday, September 10. The Gemini dollar is a stablecoin that completely regulated and will let users send as well as receive US Dollars on the Ethereum network using the ERC20 tokens.

The Gemini Dollar

This new stablecoin is anchored to the dollar at a 1:1 ratio and is the first stablecoin in the world that is completely regulated. According to the company’s announcement, the Gemini dollar will combine the creditworthiness as well as stability of the American dollar with Blockchain tech, under the aegis of the New York Department of Financial Services (NYDFS).

During an interview, Tyler Winklevoss, the co-founder and Chief Executive Officer of Gemini Trust, stated that they had been contemplating this move for more than a year now. However, getting to the point of being able to launch a stablecoin has been a lengthy process that needed a lot of due diligence as well as face-to-face meetings with the regulatory authorities.

The Superintendent of the NYDFS, Maria T Vullo stated in her press release that New York was committed to promoting innovation while also ensuring that the industry grew responsibly. She said the approvals for a new regulated stablecoin demonstrated that it was possible for companies to innovate while maintaining strong standards of compliance.

The DFS also stated that it had set up conditions to ensure that Gemini Trust would maintain standards related to AML (Anti-money laundering), anti-fraud as well as consumer protection policies.

Building Trust

To ensure that the new stablecoin is going to be a trusted token, the US dollars that will anchor the Gemini dollar will be held by State Street Bank. The balance maintained in that account will be audited every month by BPM Accounting and Consulting to ensure that complete transparency is maintained.

This has been done to ensure that there are no grey areas left with regard to Gemini dollar’s value. The Winklevoss twins have ensured that their stablecoin does not get embroiled in controversy the way the world’s most famous stablecoin Tether has.

Due to the fact that Tether has not put an official audit system in place, its credibility is being questioned and pressure is mounting on the project to justify its value. Market participants are still not satisfied that Tether is actually 100% backed by the number of US dollars that the company claims.

Therefore, the Winklevoss twins have taken extra steps to ensure that all three parties – Gemini Trust, State Street Bank and BPM – are all compliant with regulations.