U.S. bitcoin and cryptocurrency exchange Gemini today introduced the Gemini dollar, a stablecoin that is issued by Gemini, a regulated New York trust company, and strictly pegged 1:1 to the U.S. dollar.
The new stablecoin is built on Ethereum according to the ERC20 standard.
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). You can read more about the Gemini dollar in the following white paper.
Starting today, September 10, 2018, at 10 am ET, users will be able to convert U.S. dollars in their Gemini account into Gemini dollars and withdraw them to an Ethereum address. Users will also be able to automatically convert Gemini dollars into U.S. dollars by depositing them into their Gemini account.
The U.S dollars that correspond to the Gemini dollars issued and in circulation will be held at a bank located in the United States and eligible for FDIC “pass-through” deposit insurance, subject to applicable limitations.
In addition, the U.S dollar deposit balance will be examined monthly by an independent registered public accounting firm to verify the 1:1 peg. All Independent Accountants’ Reports will be publicly available. Further, the smart contracts holding the Gemini dollar token have been fully audited and formally verified by an independent security firm, whose report is now publicly available.
“We are excited to bring the Gemini dollar to market and provide a crucial link between the traditional banking system and the new, rapidly growing crypto economy. With the Gemini dollar, we continue to deliver on our mission — to build the future of money — and help transform the global financial system to enable possibilities previously unimaginable.”
