According to Forbes, New York regulators have approved the stablecoin created by Cameron and Tyler Winklevoss. This virtual currency will be traded on their crypto exchange Gemini. The report says that the Gemini Dollar will be backed by the investment bank State Street. New York regulators approved the cryptocurrency.
Winklevoss’ New Stablecoin
The cryptocurrency market currently has several stablecoins. One of the most famous is Tether (USDT). However, this virtual currency has been involved in several controversies about the funds used to back it.
The stablecoin created by the Winklevoss twins is different. The twins were working side by side with regulators from the U.S. Securities and Exchange Commission (SEC) in order to be compliant.
Tyler Winklevoss explained that it is important to build a network of players that are trusted to solve the trust problem of a stablecoin.
New York Department of Financial Services superintendent, Maria Vullo, explained:
“These approvals demonstrate that companies can create change and strong standards of compliance within a strong state regulatory framework that safeguards regulated entities and protects consumers.”
Preston Byrne, blockchain technologist, said that the Winklevoss brothers have a very interesting way to structure their affairs. According to Byrne, the brothers invest having in mind the long-run. This is something that allows them to slowly grow and succeed.
In the last months, the SEC rejected their bid to launch a Bitcoin exchange-traded fund (ETF). In July, the SEC decided to reject the proposal made by the twins for the second time.
However, there are some critics of this stablecoin. Meltem Demirors, said that the market does not have the demand for these assets.
“So basically we have more tether? feel like USD-collateralized stablecoins are only marginally interesting at best. There are dozens of efforts under way, and I don’t see natural demand for these assets. Hope this makes them $$$, because it sounds like it was expensive to print!”
The coin will be audited by multiple third-parties in different moments. This is very important since Tether failed to provide clear information about the funds it used to back the asset.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.