Gemini Launches USD Pegged Cryptocurrency
Gemini, the digital asset exchange and custodian founded by Tyler and Cameron Winklevoss, has launched a new cryptocurrency that is pegged to the US dollar.
The new cryptocurrency, called the Gemini dollar, is pegged 1:1 to the US dollar and is built on the Ethereum network according to the ERC20 standard for tokens.
Starting September 10, 2018 at 10am EST, it became possible to convert US dollars in a Gemini account into Gemini dollars and withdraw them to a specific Ethereum address. It is also possible to automatically convert Gemini dollars into US dollars by depositing them into a Gemini account.
The US 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 US dollar deposit balance will be examined monthly by an independent registered public accounting firm to verify the 1:1 peg.
The Winkevoss twins says that all the independent accountants’ reports will be made publicly available online. In addition, the smart contracts underlying the Gemini dollar token have been fully audited and formally verified by an independent security firm, called Trail of Bits, and the report stemming from this audit has been posted online.
“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,” say the Winklevoss twins in an online posting announcing the launch.