Today, September 10, Tyler and Cameron Winklevoss announced launch of the Gemini dollar — a stablecoin that is issued by Gemini, a New York trust company, strictly pegged 1:1 to the U.S. dollar, and built on the Ethereum network according to the ERC20 standard for tokens. According to the announcement, 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).
Starting September 10, at 10am ET, users are able to convert U.S. dollars in their Gemini account into Gemini dollars and withdraw them to an Ethereum address they specify. Users are also able to automatically convert Gemini dollars into U.S. dollars by depositing them into their Gemini account.
The U.S dollars that correspond to the Gemini dollars issued and in circulation will be held at a bank located in the United States and eligible for FDIC “pass-through” deposit insurance, subject to applicable limitations. In addition, the U.S dollar deposit balance will be examined monthly by an independent registered public accounting firm to verify the 1:1 peg. The announcement states that the smart contracts underlying the Gemini dollar token have been fully audited and formally verified by an independent security firm Trail of Bits.
“We are excited to bring the Gemini dollar to market and provide a crucial link between the traditional banking system and the new, rapidly growing crypto economy. With the Gemini dollar, we continue to deliver on our mission — to build the future of money — and help transform the global financial system to enable possibilities previously unimaginable,” – wrote Winklevoss brothers in the announcement.
