Priyeshu Garg · 24 hours ago · 5 min read · Insights via Vitalik Buterin
As of today, the New York trust company and digital asset exchange Gemini has set into action what no other issuer has accomplished. The first stable and regulated digital representation of the U.S. dollar can now be converted and withdrawn instantly as a stablecoin.
NYDFS to Oversee Gemini Accounts
It took four years for founders Cameron and Tyler Winklevoss to unveil the Gemini dollar (GUSD), which was built on the Ethereum network, issued under smart contract ERC20 standards and pegged 1:1 to the U.S. dollar. In addition, credit and price stability will be mutually exclusive, capable of minting, burning, sweeping and technology upgrades.
Gemini’s white paper details ERC20 capabilities of GUSD by foreshadowing its security hierarchy. The code was fortified during an eight-week assessment by high-end security developers Trail of Bits, and no gaps in performance and transaction safety that could invite hacking assaults were left unevaluated.
As an added level of armor, the New York State Department of Financial Services (NYDFS) will oversee Gemini accounts.
Tyler Winklevoss tweeted that while several fiat-based cryptocurrencies have been initiated, they all lack the quality that makes Gemini significant: supervision, transparency and examination.
Building a viable stablecoin is as much of a trust problem as it is a computer science one. The Gemini dollar is the first stablecoin in the world that has solved for both. That's the innovation here. From our white paper: pic.twitter.com/g4IEXl6Ldm
— Tyler Winklevoss (@tylerwinklevoss) September 10, 2018
Creating stable and regulated digital transactions is important because it bypasses the lengthy wait times often associated with fiat currencies, which can sometimes take days.
According to a cash examination report, at least $100,000 has been reconciled to an equal amount of Gemini dollars as of Sept. 9. Per amount of dollars in circulation, Gemini technology is restricted to and designed specifically for the U.S. dollar. Circulation of these currencies is held at omnibus banks insured by the Federal Deposit Insurance Corporation.
Pursuant to banking requirement standards, cybersecurity and capital reserve requirements, Gemini is responsible for safeguarding client and contract information.
Gemini was named one of LinkedIn’s Top 50 Startups, whose mission to build the future of money will be monitored on a monthly basis, according to a Medium blog post.