What is Gemini Dollar (GUSD)?
Stablecoins were one of the significant trends in the second half of 2018. Tether (USDT) was the only considerable stablecoin offered by substantial cryptocurrency exchanges; many new stablecoins emerged in 2018.
One such coin was the Gemini Dollar, GUSD, which is assumed to launch from its throne with the questionable market head Tether (USDT). The Gemini Dollar was started on the same day as the Paxos Standard Token (PAX) on September 10, 2018.
The Gemini Dollar was issued by Gemini Trust Company, LLC, a New York trust company, which also operates the Gemini cryptocurrency exchange.
The website points to the Gemini Dollar as "the first regulated stablecoin pegged to the US dollar under the US regulatory authorities' full recognition." Nevertheless, GUSD must assign this title with PAX, which was originated on the same day and fully regulated.
US Dollars equivalent to issued and outstanding Gemini Dollars are held in a United States bank and qualify for FDIC Deposit Transfer Insurance, subject to applicable restrictions. Besides, the deposit base in US dollars is reviewed monthly by BPM, LLP, a registered accounting firm, to determine reserves and their parity to the US dollar in a 1: 1 ratio. All independent auditor reports are publicly available.
What is the purpose of Gemini Dollar?
Cryptocurrencies can be transferred 24 hours a day and near real-time, while Fiat's centralized currencies are tied to banks' trading times.
The Gemini Dollar is attempting to fill this gap. The GUSD is meant to be an alternative for people put off by the crypto markets' volatility. The Winklevoss brothers' goal is for the Gemini dollar to become "a crucial link between the traditional banking system and the rapidly growing new crypto economy."
The Gemini Dollar can print an infinite number of tokens and can make these tokens non-transferable and freeze accounts, in addition to having the ability to change the implementation of the token every 48 hours.
Like the Paxos Standard Token (PAX), the Gemini Dollar is based on the Ethereum network according to the ERC20 standard for tokens. The smart contracts on which the Gemini Dollar token is based have been fully audited and formally verified by an independent security firm.