Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, has announced the creation of a USD-pegged Ethereum token that looks to supplant tether (USDT) as the stablecoin of choice among bitcoin traders.
Announced on Monday, the Gemini dollar (GUSD) aims to become what the controversial tether token has not, a “trusted and regulated digital representation” of the U.S. dollar that can be transmitted across the blockchain and traded on cryptocurrency exchanges located throughout the world.
“To date, there has been no trusted and regulated digital representation of the U.S. dollar that moves in an open, decentralized manner like cryptocurrencies,” Gemini wrote in the announcement, which was attributed to Cameron Winklevoss. “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).”
Gemini joins a growing stable of companies that have released cryptocurrency tokens purportedly pegged to the dollar or other fiat currencies. The most widely-used stablecoin is tether, whose eponymous issuer has been criticized for its opaque operations and close association with crypto exchange Bitfinex.
Tether is currently the eighth-largest cryptocurrency, with a circulating market cap of just under $2.8 billion. However, only bitcoin has more daily trading volume than USDT, owing to the fact that the token serves as a USD proxy on the vast majority of exchanges that cannot offer trading directly against the greenback.
Speaking with CNBC, Tyler Winklevoss said that none of thee other dollar-linked tokens are sufficiently regulated and transparent to fulfill the true potential of a stablecoin.
“I don’t think any of the offerings do adequate job in solving the trust problem. This [Gemini dollar] is the world’s first regulated stablecoin,” he said.
Developing…check back for updates
Featured image from Flickr/TechCrunch
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