On Monday, the New York state approved Gemini Trust Company’s and Paxos Trust Company’s pegged dollar digital currency, the first “stablecoin” to get the go ahead from the state’s regulator.
The Gemini dollar by Gemini, the digital asset exchange launched by twins Cameron and Tyler Winklevoss, is a stablecoin that will allow users to send and receive U.S. dollars on the Ethereum blockchain. It will be strictly pegged to the U.S. dollar on a one-to-one basis.
Paxos’ stablecoin, the Paxos Standard, will also be fully collateralized by the U.S. dollar on a one-to-one basis.
“These approvals demonstrate that companies can create change and strong standards of compliance within a strong state regulatory framework that safeguards regulated entities and protects consumers,” New York state Department of Financial Services Superintendent Maria Vullo said in a statement on Monday. Both coins are available on their respective exchanges on Monday.
One of the drawbacks of cryptocurrencies – digital tokens that use encryption techniques to secure transactions – is price volatility, which hinders means of payments or medium of exchange.
The stablecoin – any digital currency pegged to a stable asset, such as gold or the dollar – serves as a hedge against the volatility.
“When we founded Gemini over four years ago, our mission was simple: build a bridge to the future of money,” the Winklevoss twins wrote in a blog on Monday. “As a first step, this meant making it safe and easy to buy, sell, and store cryptocurrencies.”
Continue reading https://finance.yahoo.com/news/york-regulator-approves-winklevoss-paxos-131828620.html New York regulator approves Winklevoss, Paxos dollar-linked tokens By Gertrude Chavez-Dreyfuss
Curated Post published 11th September, Original Article by Gertrude Chavez-Dreyfuss for Yahoo Finance. Feature Image: Artist: DonkeyHotey | Title: Winklevoss Twins - Caricature | Source: https://www.flickr.com/photos/donkeyhotey/