How appropriate that the Winklevoss twins have chosen the astrological sign of the twins — Gemini –as the name for their new stablecoin. The brothers received regulatory approval on 10th September and each token is backed by one U.S. dollar in reserve, held by financial services giant State Street.
Stablecoins are a new frontier of growth and there are more than a few entrants in the sector, Paxos and Tether being amongst them, but the Winklevoss twins believe the Gemini token has an advantage over its competitors. Tyler Winklevoss says there is a “network of trust” that will ensure there is no shady business that has become characteristic of the stablecoin industry.
Tether, one of the most prominent stablecoins has been plagued with controversy, but Gemini promises to avoid all that due to working with State Street. The Boston-based corporation will hold the dollar reserves in an FDIC-insured account, with San Francisco-based audit firm BPM conducting an audit every month to ensure that every Gemini Dollar is backed by a dollar in reserve.
So far the brothers haven’t said if anyone is lined up to buy the stablecoin, but Tyler stated that the Gemini Dollar would target decentralized applications built on the Ethereum network as well as investors and traders seeking to move value.
It has also hired security firm, Trail of Bits and it has been working on Gemini’s stablecoin for months, identifying any issues with the code, which the firm quickly addressed.
On the same day as the Gemini announcement, Paxos also got the green light from the New York Department of Financial Services (NYDFS) to launch Paxos Standard Coin (PAX), which is similarly backed by one U.S. dollar, reserved by four different banks. Initially, it will be listd on the itBit exchange, which is owned by Paxos, but will be available on other exchanges in the future.