On September 9, Forbes reported that the New York department of Financial Services (NYDFS) has approved Gemini Trust’s application to issue a cryptocurrency. The New York-based company launched the US dollar-backed cryptocurrency called Gemini Dollar on the same day.
Gemini dollar will have a value similar to the value of the U.S dollar. In addition, the report revealed that the coin is primarily designed to be a medium of exchange. Another feature of the Gemini dollar is that its price will be more stable than other major cryptocurrencies.
Forbes revealed that State Street will be holding all the asset backing the cryptocurrency (US dollar) in an FDIC-insured account. Also, the account will be audited by an undisclosed number of third-party auditing firms.
Gemini Recruits the Big Guns
Gemini trust’s co-founder and CEO Tyler Winklevoss told Forbes that the project was achieved because the company accepted lots of inputs from trusted and established corporations. State Streets which is one of these corporations will be accepting cash deposits for Gemini trust. This will be the first time the Boston-based Corporation will be accepting funds for a crypto firm.
Trail of Bits is another big gun involved in the project. The New York-based security firm is one of the third party auditing firms contracted by Gemini trust. They screened the smart contract supporting the platform for bugs.
Though the official results of the audit are yet to be released, Dan Guido, the co-founder, and CEO of Trail of Bits disclosed some of the initial assessment results. Guido told Forbes that at the preliminary stage, his firm identified some security issues. However, he added that all preliminary risk assessment results they submitted were resolved by Gemini Trust.
NYDFS Approves Two US-Backed Stable Coin
Apart from Gemini trust, NYFDS also announced the approval of Paxos’ US dollar backed ethereum ERC-20 token. The agency’s superintendent Maria T. Vullo reportedly said that the approved cryptocurrencies will be accountable to regulatory supervision. Vullo added that the exchanges are required to certify that all transaction made with tokens are legal.
Paxos is the parent company of itbit which is ranked as the 50th largest crypto exchange in the world.