Winklevoss brothers launch NY-approved stablecoin
The Winklevoss brothers, Tyler and Cameron, are best known for their Gemini cryptocurrency exchange. The pair has now moved deeper into the crypto space and has launched a stablecoin, the Gemini dollar after receiving approval by the New York Department of Financial Services (NYDFS).
The Gemini dollar is backed by US dollars “held at a bank located in the United States and eligible for FDIC ‘pass-through’ deposit insurance, subject to applicable limitations.” It is the first cryptoasset introduced by the brothers, who have repeatedly attempted to receive Securities and Exchange Commission (SEC) approval for Bitcoin exchange-traded funds (ETF). To date, all of the proposals have been denied.
Trading in the Gemini dollar began yesterday. Tyler told Forbes magazine that he believes it will help resolve issues that have been associated with trading delays seen between time-restricted fiat exchanges and the crypto markets that operate around the clock. He explained, “...If there’s a price dislocation in a certain market and it’s a Friday night traders can’t move fiat currency until Monday."
Stablecoins are a form of cryptocurrency that is backed by assets such as fiat or hold. They have received mixed reviews but are considered to be more stable than the majority of digital currencies currently in the market.
The approval by the NYDFS marks a shift toward expanded acceptance of certain types of cryptocurrencies. The same day the Gemini dollar was introduced, Paxos launched its own stablecoin, the Paxos Standard, which was also approved by the NYDFS. The regulatory body's superintendent, Maria T. Vullo, said, “These approvals demonstrate that companies can create change and strong standards of compliance within a strong state regulatory framework."