Tyler and Cameron, the Winklevoss Brothers who have created the cryptocurrency trading platform, Gemini, have received the permission from New York regulators to launch Gemini dollar, their own stablecoin. The new stablecoin is backed by the U.S.dollar and can be held at a bank located in the United States and is eligible for FDIC pass-through deposit insurance. Their idea to launch the stablecoin is to help build a network of important players that can resolve the trust problems of such a currency.
Trading in the Gemini Dollar is going to hit the market soon and the brothers will ensure that they solve issues associated with time delays between markets that are open and the ones that have time-restricted fiat. There have been a mixed reaction on the idea of stablecoins that are designed to be less volatile and will remain a hot debate for the coming years.
The greenlit Gemini dollar by NYDFS makes it the world’s first regulated stablecoin to launch. On the contrary, Trust company Paxos claims that their newly launched Paxos Standard, a regulated crypto asset that is approved and regulated by the New York State Department of Financial Services is the world’s first stablecoin to hit the market. Either way, it is a new step in the direction of stablecoins and a form of hope for cryptocurrency investors and traders.
Regulation and approval of such currencies will add trust in the investors and NYDFS superintendent Maria T. Vullo agrees with it. As per the official, such approvals support companies and demonstrate that they can create change and strong standards of compliance within a strong state regulatory framework.