The Winklevoss twins get NY regulator’s nod for a dollar-pegged cryptocurrency

The Winklevoss twins have finally attained an approval from the New York Department of Financial Services (NYDFS) a U.S. regulator for a dollar-pegged cryptocurrency.

Tyler and Cameron Winklevoss, well known for being bitcoin billionaires, have been given the green light by the NYDFS to launch the Gemini Dollar, a new US dollar-pegged cryptocurrency and stable coin. This was made public through the twins’ Gemini exchange on Monday.

Tether vs Gemini dollar?

With this development, the new coin now becomes a direct competitor to Tether, a controversial US dollar-pegged stablecoin. It is expected that this new coin will provide more transparency to the market in regards to providing proof of regular audits, as well as accountability in banking. At present, Tether is known to have only allowed informal audits with the legitimacy of its currency reserves in question. Tether claims to have every single token backed by $1.

Regarding the institutional interests of the new stablecoin, the Winklevoss brothers were quick to note that the existing stable coins were yet to fully meet the needs of its users and Gemini Dollars, therefore, is being created to fill in such a void.

An extension of the Gemini exchange

For more than one year now, the twins have been working on the bid through Gemini exchange, their brainchild and are now glad it finally came to be. With this go ahead from NYDFS, they have now put in place plans to make the stablecoin available immediately.

Linking more people to the blockchain

While referring to the stablecoin’s all-hours markets, Cameron, Gemini’s Co-Founder and President were quick to reiterate that the Gemini Dollar will be a 24/7/365 operating asset class, unlike conventional U.S. equities that would usually trade 9 to 4, five days a week. He further noted:

The stablecoin is effectively a way to link people to the world of digital assets and to allow fiat currency to move on a blockchain the same way digital assets move.

NYDFS’ approval

Notably, Gemini Dollar is not the only stable coin approved by the NYDFS, which also granted permission to Paxos Standard, a stablecoin created by Paxos, a trust company behind the online cryptocurrency exchange ItBit.

With this decision to approve the stablecoin, the NYDFS is once again confirming the slow but sure progress of integrating cryptocurrency into the mainstream financial markets despite the volatility and legal uncertainties.

Nicholas

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Nicholas is Nicholas is a prolific technology writer and cryptocurrency enthusiast. He has been writing professionally for the last 6 years, especially on emerging technology. His current focus is on blockchain technology and cryptocurrency. He has been working with several local and international clients over the years to produce dependable, well researched and updated industry content. He loves travelling and spending time with family in his free time.

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