The Gemini Dollar-Pegged Stablecoin To Launch Today After Regulator’s Green Light

Yesterday, we reported breaking news about New York regulators approving two dollar-pegged stablecoins, one of which is the Gemini Dollar, launched by the Winklevoss brothers and the creators of the cryptocurrency trading platform Gemini.

Today, we have more information – specifically about Gemini and the so-called Gemini dollar that now has the backing of the New York Department of Financial Services (NYDFS). According to an official post on Gemini’s Medium, the coin will be backed by US dollars that are:

“….held at a bank located in the United States and eligible for FDIC ‘pass-through’ deposit insurance, subject to applicable limitations.”

This move is also important because it represents the first crypto asset that the Winklevoss twins launched. Even though their original mission was to launch a Bitcoin exchange-traded fund (ETF), the second rejection from regulators in July made them shift their plans.

Forbes quoted Tyler Winklevoss stating:

“It’s not just Gemini Trust. But you have to build a network of important players that are also trusted to solve for the [sic] trust problem of a stablecoin.”

The official trading of the Gemini dollar will begin today. Tyler Winklevoss already told Forbes that he hopes this will solve issues associated with time delays between 24/7 crypto markets and time-restricted fiat ones.

The crypto analysts are still with mixed reactions regarding stablecoins. While some see them as potentially controversial, others think that they are designed to be less volatile and can improve the economy in the crypto world.

One way or another, the Gemini dollar is the “world’s first” regulated stablecoin to launch, according to the brothers, although the second one which has also been approved and issued by the trust company Paxos is making the same claim.