Winklevoss Brothers Launch Fiat-Backed Stable coin.
The Winklevoss brothers, creators of the digital asset exchange Gemini, have received permission from New York regulators to launch their own stablecoin the “Gemini dollar”.
The Gemini dollar now has the backing of the New York Department of Financial Services (NYDFS).This will be the first example of a trusted and regulated digital representation of the U.S. dollar that moves in an open, decentralised manner like cryptocurrencies. Gemini is being backed by U.S. dollars that are “held at a bank located in the United States and eligible for FDIC ‘pass-through’ deposit insurance, subject to applicable limitations.”
The move represents the first crypto asset from the twins, whose mission to launch an ETF.
“It’s not just Gemini Trust,” Forbes quotes Tyler Winklevoss as saying:
“But you have to build a network of important players that are also trusted to solve for the [sic] trust problem of a stablecoin.”
Trading of the Gemini dollar begins today, Tyler telling Forbes he hopes it will solve issues associated with time delays between 24/7 crypto markets and time-restricted fiat ones.
“…If there’s a price dislocation in a certain market and it’s a Friday night traders can’t move fiat currency until Monday,” he added.
Cryptocurrency commentators have given increasingly mixed receptions to stablecoins — cryptocurrencies designed to be less volatile — the most popular and controversy being Tether (USDT).
The NYDFS green light makes the Gemini dollar the “world’s first” regulated stablecoin to launch, according to the brothers on twitter.
“These approvals demonstrate that companies can create change and strong standards of compliance within a strong state regulatory framework,” NYDFS superintendent Maria T. Vullo commented to Forbes.
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