Cameron and Tyler Winklevoss, the founders of the cryptocurrency exchange Gemini, has revealed their intention to build a US dollar-pegged Ethereum token that will undermine the controversial dollar pegged cryptocurrency Tether (USDT) to become the most preferred stable coin among cryptocurrency investors.
Gemini’s intended stable coin, dubbed Gemini dollar (GUSD), aims to become “a trusted and regulated digital representation,” of the greenback that can be transferred across blockchain and transacted on cryptocurrency exchanges across the globe. GUSD aims to obtain an accreditation which Tether has so far unable to receive.
While announcing the plan, Cameron Winklevoss stated
“To date, there has been no trusted and regulated digital representation of the U.S. dollar that moves in an open, decentralized manner like cryptocurrencies.”
Cameron Winklevoss further stated
“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).”
Notably, in July, Stronghold, a global payment and trading platform provider, announced the launch of a stable coin named “Stronghold USD.” The cryptocurrency, pegged to the US dollar on a 1:1 ratio, is built on Stellar Lumens’ (XLM) blockchain.
Despite these developments, Tether continues to dominate the stable coin market. The daily trading volume of Tether is only behind Bitcoin (BTC) as several major cryptocurrency exchanges, including Binance, does not accept US dollar deposits.
While speaking with CNBC, Tyler Winklevoss argued that none of the other dollar-linked cryptocurrencies are sufficiently regulated and offer enough transparency to fill up the void created by the lack of a stablecoin.
Tyler Winklevoss said “I don’t think any of the offerings do adequate job in solving the trust problem. This [Gemini dollar] is the world’s first regulated stablecoin.”
The cryptocurrency investors would be thrilled to have a regulated stablecoin in the market.
