New York state regulators gave clearance to Gemini and Paxos
New York state regulators gave clearance to Gemini and Paxos to launch their stablecoin backed by 1:1 to the U.S. dollar.
Crypto exchange Gemini trust was founded by Winklevoss twins. The twins have revealed that they are going to launch an Ethereum based token Gemini Dollar (GUSD), which will be backed by U.S. dollar. The USD focused stablecoin will be FDIC insured by State Street. Most of the people considering this as bullish news as the New York State Department of Financial Services (NYDFS) has approved the Gemini Dollar plan.
Another company which got the approval from the New York State Department of Financial Services (NYDFS) for similar stablecoin is Paxos. Paxos is the company which is behind the over the counter exchange itBit. The company is going to issue the U.S. dollar backed Paxos Standard. The Paxos Standard will be fully collateralized one for one by U.S. dollar reserves. It will allow the users to obtain a liquid and digital alternative to cash which will be available 24/7 for instantaneous transaction settlement.
According to the co-founder and chief executive officer of Paxos, Charles Cascarilla, Paxos Standard will have an influence on financial markets and will allow the investors and businesses to transact in fully USD collateralized asset with the benefits of blockchain technology and oversight from financial regulators.
The tether was launched way back in 2014 and since then has become the most recognized stablecoin. Post that, many other stablecoins were launched which have all been backed by some underlying asset like other currencies. In general, stablecoins are the digital alternative of the cash and serve as a hedge against volatility. Some people believe that the stablecoins are used for money laundering, terrorist financing, and to manipulate the price of bitcoin. But Paxos and Gemini stablecoins will be controlled by Bank Secrecy Act, anti-money laundering, and Office of Foreign Assets Control so that they will not be used in money laundering and terrorist financing. According to Cascarilla, there is a significant advancement in the digital assets. These products combine the traditional financial system and frictionless global economy.