Gemini Dollar – or the first regulated stablecoin as the team likes to call their project – is pretty much what the name suggests: USD on the Blockchain.
Geminin Dollar tries to combine the best of two worlds: the stability and creditworthiness of United States Dollars and the accessibility as well as security of Blockchain-based online money transfers.
The way the project operates is a sight to be seen because in today’s world of crypto new teams are looking for more advanced and technological solutions while Gemini Dollar remains as simple as snow. Their entire project can be described in two simple steps from the user’s perspective:
In simpler words, the system simply takes the desired equivalent in USD from your crypto account and turns them into USD. The exchange rate is always 1 GUSD:1USD.
With all the trading that’s going on in the crypto world the volatility of digital assets is considered a blessing. Why bother with something as stable as GUPD that always equals to USD?
Well, the simplicity of transactions is the number one reason. You’ll be able to send money as simply s you would shoot an email.
Then there are the dapp developers who would like to incorporate fiat currency payments in their application and are free to do so with Gemini.
Lastly, the traders themselves will be able to move USD and purchase more crypto faster and with smaller fees.
Gemini Dollar is a company from New York, the financial capital of the world. That alone is a fine indicator proving that the team knows what they are doing but, to top things off, they are also licensed by the NYSDFS or the New York State Department of Financial Services. Gemini meets, with the digital security requirements of asset exchanges in the state of NY, they oblige to the set of banking compliance standards and they possess a capital reserve.
This makes validity as well as transparency the strong sides of the project. We only wish that the same could be said about more blockchain projects and ICOs.
GUSD is featured on more than 30 exchanges that include some of the major players in the crypto world like:
Gemini Dollar is a project with a simple premise that is much desired by the community nonetheless. A lot of parties from investors to traders to developers can benefit from a stable, licensed currency that’s as clear as day 24/7/365.
Unfortunately, this doesn’t mean that you will be winning a whole lot from the purchase of the tokens. Gemini is not about that. It is about providing you with a useful tool that will further enhance your experience with Blockchain rather than providing immediate monetary value. And if you were to ask us for an opinion, such an offer is much more needed on the market than the next jump in altcoin prices.
Gemini dollars are created at the time of withdrawal from the Gemini platform. Gemini customers may exchange U.S. dollars for Gemini dollars at a 1:1 exchange rate by initiating a withdrawal of Gemini dollars from their Gemini account to any Ethereum address they specify. The U.S. dollar amount of Gemini dollars is debited from a customer’s Gemini account balance at the time of withdrawal. Gemini dollars are redeemed or “destroyed” at the time of deposit into the Gemini platform. Gemini customers may exchange Gemini dollars for U.S. dollars at a 1:1 exchange rate by depositing Gemini dollars into their Gemini account. The U.S. dollar amount of Gemini dollars is credited to a customer’s Gemini account balance at the time of deposit. The Gemini dollar can be transferred on the Ethereum network.
One desirable outcome of a stablecoin is convergence between the tokens issued and the U.S. dollars exchanged for their creation. The amount of tokens issued and in circulation can be observed on the blockchain, however, verifying the underlying U.S. dollar balance to demonstrate proof-of-solvency requires examination by a trusted party. For assurance, Gemini proposes that the audit committee of the board of directors of Gemini engage an independent registered public accounting firm to regularly examine and attest to the underlying U.S. dollar balance in accordance with attestation standards established by the American Institute of Certified Public Accountants.
