Gemini launch tied to the dollar stablon
The Department of financial services of the state of new York approved the request of the company Gemini Trust to release its first crypto token. Gemini Dollar was released this Monday on the Ethereum blockchain and uses the U.S. dollar as the currency for the security. This writes Forbes.
Gemini Dollar is designed to provide liquidity to users who wish to transfer US dollars through the Ethereum network. It is “strictly linked” to the base currency, while the Gemini Trust is responsible for the correspondence between the number of tokens in circulation and dollars used for their support.
“Until today, did not exist a trusted and regulated digital playback of the U.S. dollar, which could be left open and decentralized as crypto-currencies”, — said in the announcement on the website of the stock exchange Gemini. “Gemini Dollar (Ticker: GUSD) combines the credit quality and price stability of the us dollar with the technology of the blockchain and oversight of us regulators, particularly the Department of financial services of the state of new York.”
Investment giant State Street will keep the dollars used to provide Gemini Dollar, insured by the Federal Corporation on insurance of contributions (FDIC) Bank accounts, and the token will be held monthly audits of the company BPM Accounting and Consulting.
“It concerns not only the Gemini Trust,” said CEO and co-founder of the exchange Gemini Tyler Winklevoss. “You want to create a network of important players that will be entrusted to the decision of problems of trust stablon”.
While State Street will not undertake the storage of cryptocurrency, the Winklevoss says that the team, consisting of more than 150 people, over the years worked with the Bank to obtain the required score.
“This process is associated with many checks and barriers,” he said.
The Winklevoss brothers refused to tell were someone of interest to their new token at the current stage, however, the number of potential customers they called decentralized applications running on the Ethereum blockchain, individual traders and financial institutions.
Registered users of the exchange, Gemini can begin to convert dollars in their accounts, the Gemini Dollar tokens today. Similarly, they can output the tokens received on their accounts in Fiat dollars.