The Winklevoss Twin’s are at it again, with their own stablecoin. They don’t seem to give up even after their Bitcoin ETF was a failure. The stablecoin will be called Gemini dollars, named after their successful cryptocurrency exchange Gemini.
The Gemini dollar is the first cryptocurrency to get the backing of the New York Department of Financial Services (NYDFS) which is excellent for Gemini. The Gemini dollar will be backed by U.S Dollars which will be held at a bank in the United States with eligibility for FDIC deposit insurance. Thus the 1:1 peg to the US Dollar can be legally backed thanks to the reserves held.
In terms of Blockchain, it will be on the Ethereum platform while performing as an ERC20 token.
The primary objective of the Winklevoss Twins is to ensure that Gemini dollar helps close the gap between fiat currencies in the traditional banking system with cryptocurrencies.
An independent accounting firm will look into the examination of the companies and file reports which will be available on Gemini’s website to ensure transparency.
In reply to the news, a user on Twitter by the name of ‘Matt Boerchert’ congratulated the move by the Winklevoss Twins. He highlighted the move for cryptocurrency’s mainstream adaptation is getting closer with volatility settling down due to stable businesses based on cryptocurrency.
Reddit user ‘ CRPA9’ suggested the Gemini Dollar stablecoin could be a fierce competitor to Tether given the problems Tether is facing recently.
Very big news with all the controversy around TETHER at the moment
Tether is the most popular stable coin however it has been facing several concerns as it refuses to be audited and won’t disclose its bank details. Doubts were still casted over Tether even though they proved to hold more than enough US Dollars in its reserves in the Puerto Rican bank accounts.
The Gemini dollar is available already and allows users to convert US Dollars to Gemini Dollars, with withdrawals on an Ethereum wallet.