Ethereum

Gemini Launches ERC20 Tokenized Dollar on Ethereum

from Trust Nodes 5 years ago 0 0 1204

One of the biggest crypto exchange has today launched Gemini dollar, which they call “ the world’s first regulated stablecoin,” with the regulator being the New York State Department of Financial Services (NYDFS).

Gemini says GUSD is pegged 1:1 to the U.S. dollar and is built on the Ethereum network in compliance with ERC20 standards. The creation and redemption process is moreover very simple. They say:

“Starting today, September 10, 2018 at 10am ET, you will be able to convert U.S. dollars in your Gemini account into Gemini dollars and withdraw them to an Ethereum address you specify.

You will also be able to automatically convert Gemini dollars into U.S. dollars by depositing them into your Gemini account.”

The whitepaper further clarifies that the Gemini Dollars (GUSD) are created when they are withdrawn from Gemini and then “destroyed” or converted into actual dollars when deposited at the exchange. They say:

“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.”

In effect that makes this a proper dollar that can move around like any other crypto with easy redemption or creation by simple conversion of dollars deposited in Gemini to tokenized dollars or vice versa.

The dollars are further held in FDIC eligible US bank accounts with audits provided by independent accountants to confirm the tokenized dollars are fully backed.

So potentially giving some competition to Tether, which is now nearing a market cap of $3 billion, as well as algorithmic stablecoins like Dai.