A new stablecoin has hit the market today — and this one is backed by the Winklevoss twins’ Gemini Trust Company.
As reported by Fortune, the New York Department of Financial Services (NYDFS) has signed off on Gemini Trust Company’s first-ever cryptocurrency — the Gemini Dollar — which is available today.
The Gemini Dollar uses the Ethereum blockchain and is backed by the U.S. dollar at a ratio of one-to-one. Like Tether (USDT), the cryptocurrency’s fiat-backing aims to provide stability to the token — hence why Gemini Dollar, Tether and the like are called stablecoins.
‘Network of Trust’
Tyler Winklevoss, however, claims that Gemini Dollar is unlike any other stablecoins because it features what he calls a “network of trust,” explaining:
It’s not just Gemini Trust. But you have to build a network of important players that are also trusted to solve for the trust problem of a stablecoin.
Because a fiat-backed stablecoin is nothing without actual fiat backing it, Gemini’s account will reportedly be audited on a months basis to make sure the dollars are actually there. This indeed helps Gemini Dollar stand out from the crowd, as not everyone is convinced that Tether actually holds $2,756,421,736 to match its current cryptocurrency supply in circulation.
The Gemini Dollar isn’t the only new stablecoin hitting the market today.
Fortune reports that “Paxos, the parent company behind itBit, the 50th-largest exchange in the world, also received regulatory approval for a similar U.S. dollar-backed stablecoin issued on the ethereum blockchain.”
What do you think of the Winklevoss twins’ new stablecoin, Gemini Dollar? Do you think Paxos’ stablecoin will gain significant traction in the increasingly competitive stablecoin space? Do you trust Tether (USDT)? Let us know your thoughts in the comments below!
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