Winklevoss Brothers Issue Dollar-Backed Stablecoin
On Monday, September 10, Gemini exchange, created by the Winklevoss brothers, have announced the release of an Ethereum-based stablecoin, which is backed by US dollars, MarketWatch reports.
The NY State Department of Financial Services (NYDFS) reviewed and approved the idea of creating the Gemini dollar. According to the company's blog, it became the first-ever regulated stablecoin. The value of the new cryptocurrency will equal the US dollar's price. Thus, the crypto exchange hopes to provide sufficient liquidity and conduct dollar transactions in the Ethereum network. Deposits in US dollars of Gemini Trust will correspond to the quantity of tokens in circulation.
In Gemini they intend to keep their funds in the US State Street Bank and to insure them within the framework of the Deposit Insurance Program of the Federal Depository Corporation (FDIC). The company's banking holdings will be audited each month by the BPM Accounting and Consulting specialists.
Gemini's stablecoin is a part of the company's co-founders strategy to create “money of the future” and has become the lacking link between the traditional financial system and crypto economics, Tyler Winklevoss, the co-founder and CEO of Gemini Trust, stated.
As previously reported, brothers Winklevoss, the founders of the trading platform Gemini, created the association Virtual Commodity to solve issues of the regulation of the crypto market.