New Crypto Stablecoin Comparison: Gemini Dollar (GUSD) vs Paxos Standard (PAX)
Full Comparison Among Gemini Dollar (GUSD) and Paxos Standard (PAX) Revealed by Crypto Globe
Stablecoins have been making an entrance within the crypto sphere and it seems like they are growing by the numbers. On Monday, September 10, the Gemini Dollar (GUSD) and the Paxos Standard (PAX) have been launched. Based on the community reaction to the news, it is clear that GUSD is currently dominating.
This isn’t shocking to see as the Co-Founders behind the token are none other than the Winklevoss twins, Cameron and Tyler!
Introducing the Gemini dollar! The world's first regulated stablecoin that brings US dollars onto the blockchain. Beyond proud of our @GeminiDotCom team as we continue to build the future of money! https://t.co/WytbQhuabO
— Cameron Winklevoss (@winklevoss) September 10, 2018
Thrilled to announce that today @PaxosGlobal launched Paxos Standard token (PAX), the world’s first token issued directly by a regulated Trust company. PAX is fully collateralized 1:1 with USD in reserve bank accounts. Find out more @ https://t.co/Y11SWZ6F6x pic.twitter.com/msxhRQ5pfw
— itBit by Paxos (@itBit) September 10, 2018
Since its launch, an interesting comparison analysis between the two stablecoins have been offered by Crypto Globe and here’s a quick look:
Similarities Between GUSD and PAX
First, both stablecoins, which have pinned to the USD by a ratio of 1 to 1, are regulated and are supported by the New York State Department of Financial Services (NYSDFS). The respective tokens are based off of the Ethereum blockchain, namely ERC20 standard. Next, both stablecoins emphasize greatly on transparency, as their codes are made available to the general public.
Following that are more technical similarities, which include monitoring and updating, “BSA/AML and OFAC controls”, protecting the token from being used for illegal matters, and ensuring that consumers are well aware of the possible consequences that will arise due to using tokens for illicit activities.
Differences Between GUSD and PAX
According to Crypto Globe, the codes for each token are unique, which does not come too much of surprise. Another interesting difference pointed out comes from an original report made by Market Watch, where it was revealed that the two stablecoins Gemini Dollar (GUSD) and Paxos Standard (PAX) have different deposits.
GUSD deposits are made at the State Street Bank, while PAX storage was split among four different American financial institutional partners. Lastly, each stablecoin has its respective auditor – accounting firm, BPM for the former and auditing firm, Withum for the latter.
What other similarities and differences should be mentioned in order to see the more superior stablecoin of the two? Let us know in the comments below!