Gemini Launches ‘Gemini Dollar’ (GUSD), a NYDFS-Regulated Crypto ERC20 Token Pegged to the Dollar
Gemini Trust Exchange Launches NYDFS-Regulated Crypto (GUSD) Pegged to the Dollar
Crypto exchange Gemini has made known today that it has launched a dollar-backed stablecoin on Ethereum blockchain.
According to the announcement, the Gemini dollar is an innovation to guard against liquidity for crypto lovers willing to receive or send U.S. dollars on the ethereum network.
The cryptocurrency will be pegged to the U.S. dollar. While the Gemini Trust Company will be entitled to holding USD deposits equivalent to the number of tokens in circulation.
A statement by Gemini Trust indicated that the idea is just to bring the aim of Gemini to fruition, stating that the next step in their mission is to improve the linkage between these worlds by giving fiat currency the same desirable technological qualities of cryptocurrencies.
According to the release, the Gemini dollar — a stable value coin is issued by Gemini, a New York trust company, is going to be strictly pegged 1:1 to the U.S. dollar.
In the same line, it is going to be built on the Ethereum network according to the ERC20 standard for tokens.
“The Gemini dollar (ticker symbol: GUSD) combines the creditworthiness and price stability of the U.S. dollar with blockchain technology and the oversight of U.S. regulators, namely, the New York State Department of Financial Services (NYDFS),” the release reads.
Meanwhile the Gemini dollar is going to be the world’s first regulated stablecoin.
From now on, the information reflects that crypto enthusiast can now convert U.S. dollars in their Gemini account into Gemini dollars, while withdrawing them to an Ethereum address you specify.
The U.S dollars equivalent of the Gemini Dollars will be kept in a bank located in the United States and eligible for FDIC “pass-through” deposit insurance with applicable limitations noted.
On the same subject, the U.S dollar deposit balance is to be audited by external accounting firm. In furtherance, the underlying smart contracts upholding the Gemini dollar token, at the moment, have been fully vetted and officially verified by an external security firm.