Winklevoss Stablecoin Granted Regulatory Approval in New York
After pursuing U.S. regulatory acceptance for years, the Winklevoss twins were finally vindicated today — albeit, not for reasons related to their bitcoin ETF product. Rather, they have secured the first-ever government regulated stablecoin in cryptocurrency — dubbed the Gemini Dollar.
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The Gemini Dollar Gets Uncle Sam’s Blessing
The Gemini Trust Company, the Winklevoss twins’ cryptocurrency exchange, announced on Monday that they had secured approval from the New York Department of Financial Services to release their new stablecoin.
The product aims to maintain a 1:1 exchange ratio with the U.S. dollar and, in essence, allow traders to move their dollars across a blockchain network. This will provide a cheaper way to transmit money across the world 24/7.
Indeed, Tyler Winklevoss said just as much during an interview with CNBC, saying:
“It is really a matter of bringing your US dollars on to the blockchain and making them borderless 24/7.”
Furthermore, they think their coin will be able to distinguish itself from other big-name stablecoins already on the market, such as Tether, through increased transparency and oversight — something they’ve seemingly already achieved through regulatory approval.
The approval today comes just weeks after their bitcoin ETF product was denied yet again by the SEC, something that many had speculated would result in a dramatic upsurge in bitcoin’s price, if and when approved.
The Stablecoin Craze Continues
The emergence of stablecoins as a leading force in cryptocurrency adoption seems to be increasingly shaping the industry’s future. Many top companies and entrepreneurs have shifted their focus to the creation and propagation of price-stable cryptos.
Indeed, the news of the Gemini Dollar’s regulatory acceptance has closely followed the announcement of the Binance-backed stablecoin known as Terra. This particular coin is notable because of its focus on merchant acceptance, and has partnered with a network of e-commerce sites to give the crypto immediate purchasing power.
Terra and the Gemini Dollar join current stablecoin king, Tether, in trying to provide a more predictable environment for traders and users alike — one that avoids one of the major pitfalls of the current cryptocurrency market: price volatility.
In doing so, these major players are hoping to help cryptocurrency in its maturation process by acting as a gateway for institutional investors and other skeptics.
Michael Moro, the CEO of Genesis Global Trading, hinted at the stablecoin’s potential going forward:
“Right now they’re [stablecoins] purely used on exchanges (arbitrage or crypto-to-crypto trading), but I think their potential use cases are much greater than just that.”
What do you think of the Winklevoss twins getting government approval for their stablecoin? Let us know in the comments section below.
Images via Winklevoss twins, Gemini