Gemini, the cryptocurrency exchange founded by popular crypto-millionaire brothers (The Winklevoss Twins), has launched a USD-pegged Ethereum token which takes almost the same form of tether (USDT).
The new currency termed ‘Gemini Dollar’ (GUSD) aims to provide a worthy alternative to the controversial tether (USDT) token. According to its official statement, Gemini is poised to offer a;
trusted and regulated digital representation of the U.S. dollar which can be transmitted across the blockchain, move in an open, decentralized manner like cryptocurrencies and be traded on cryptocurrency exchanges located around the world.
Speaking further, Cameron Winklevoss stated that the Gemini Dollar (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).
Twin brother Tyler Winklevoss, also expressed great confidence in the GUSD as he opined that none of the other dollar-linked tokens are well regulated and transparent enough to fulfill the true potential of a stablecoin. In his words,
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.
The GUSD looks set to tally or counter the Tether (USDT) which is the most widely-used stablecoin at this time, eighth-largest cryptocurrency by market cap of just under 2.8 billion and second by daily trading volume after Bitcoin. However it (USDT) has been subject to criticism; questioning its issuer’s opaque operations and close association with crypto exchange Bitfinex.
As specified in its white paper, the GUSD is an ERC-20 token based on the Ethereum blockchain. Intending users can acquire the GUSD by depositing USD into their exchange accounts and subsequently converting them into tokens which can be withdrawn to any Ethereum address. Also users can exchange GUSD for fiat (physical dollars) from within their Gemini accounts.
The Gemini platform by this creation now joins a host of growing companies that have released cryptocurrency tokens purportedly pegged to the dollar or other fiat currencies.