You’ve got to hand it to the Winklevoss twins and their efforts in the cryptocurrency ecosystem. They’ve made a clear commitment to playing by the current rules, working closely with regulators, third-party auditors and partners (Nasdaq), developing institutional infrastructure, and ultimately winning over the largest financial players in the world.
They took another step in that direction today by announcing the regulatory approval and custody details of a ‘stable coin’ called the Gemini Dollar.
Via ccn.com :
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).”
As outlined in the Gemini dollar whitepaper, GUSD is structured as an ERC-20 token on the Ethereum blockchain. Gemini users can acquire GUSD by depositing USD into their exchange accounts and then converting them into tokens, which can then be withdrawn to any Ethereum address. Similarly, users can exchange GUSD for physical dollars from within their Gemini accounts.
Of particular interest in this story is the ERC-20 aspect of the Winklevoss ‘stable-coin’. Given the destruction of current $ETH prices, there could be cause for concern regarding the stability aspect of the coin itself.
That concern has been voiced loudly across CT (crypto twitter) yet it looks like the Winklevoss twins have added several layers of protection regarding that criticism:
“To date, there has been no trusted and regulated digital representation of the U.S. dollar on the blockchain. We are excited to bring the Gemini dollar to market, a stablecoin that combines the creditworthiness and price stability of the U.S. dollar with blockchain technology and the oversight of the NYDFS.”
Backed by the US Dollar? Check. Approved by the New York Department of Financial Services (regulatory)? Check. Creditworthiness and price stability? Check.
We’ve said before on these pages that the Winklevoss twins could be the smartest guys in crypto. This move proves to be another marker leading down that path. They are building a powerhouse ecosystem that plays well with others, and insulating themselves from a constrictive regulatory announcement by staying one step ahead and ‘playing nice’ with downstream governmental bodies.
And don’t forget this, as you watch the moves that Tyler and Cameron continue to make on behalf of Gemini:
“Based on two sources close to Gemini and the Winklevoss twins crypto empire we believe that Gemini and Nasdaq are moving closer and closer to a ‘joint venture’ that allows both the Nasdaq and Gemini to list tokens and provide liquidity on a global scale. According to both sources, there is a plan being constructed that would see the Nasdaq ultimately list top market cap coins for global trading.” per our article regarding Gemini and Nasdaq and their work together.
While there will be skeptics of this move, take a step back and look at the bigger picture of news being made over the past week. Ecosystems and adoption remain the trend in crypto.