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The Gemini dollar, or GUSD, is a cryptocurrency that is linked to and supported by US dollars held in bank accounts that are insured by the Federal Deposit Insurance Corporation (FDIC). These reserves regularly undergo audits by BPM LLP, a professional accounting firm, to ensure the stability of the GUSD’s value.
Key Takeaways
Gemini dollar (GUSD) is a stablecoin issued by the Gemini Trust Company, LLC – a New York trust company regulated by the U.S.
It is pegged 1:1 to the United States dollar and can be redeemed for US dollars through the Gemini exchange.
GUSD is an ERC-20 token built on the Ethereum blockchain and can be used for trading, remittances, and as a store of value.
GUSD aims to provide a more stable alternative to other cryptocurrencies that are subject to high volatility.
The token’s value is backed by USD held in a bank account at State Street Bank and Trust Company.
GUSD is a stablecoin developed by Gemini, a cryptocurrency exchange established by brothers Cameron and Tyler Winklevoss in 2014. The stablecoin received approval from the New York Department of Financial Services (NYDFS) to launch in 2018. Gemini claims it is the first regulated stablecoin, although Paxos also launched a NYDFS-regulated stablecoin on the same day. The Gemini Trust Company LLC maintains a corresponding amount of USD deposits for the number of GUSD tokens in circulation.
Gemini Dollar’s Creation
The Gemini dollar (GUSD) is a stablecoin created by the Gemini Trust Company, a digital currency exchange and custodian established in 2014. The GUSD pegs to the value of the US dollar and backs itself by USD deposits held in FDIC-insured bank accounts, routinely audited by BPM LLP. The New York State Department of Financial Services approved the stablecoin for launch in September 2018. Users can buy, sell, and store it on the Gemini platform along with other digital assets.
The Gemini Dollar aims to bridge the gap between traditional finance and the crypto industry. It is an ERC-20 token whose smart contracts have undergone audits by the security firm Trail of Bits Inc. GUSD’s key feature is that it has undergone full regulation by the NYDFS, making it the first regulated stablecoin. This allows for increased trust and security for users looking to transact in a stable currency within the cryptocurrency market.
Gemini Dollar Development
In September 2018, the Gemini Trust company received approval from the New York Department of Financial Services for launch. Boston’s State Street Bank holds the US dollar reserves that back GUSD. They have Federal Deposit Insurance Corporation (FDIC) deposit insurance. Customers registered with Gemini can convert their USD into GUSD and deposit them to an Ethereum address. The company adjusts their holdings to match the number of tokens in circulation.
The Gemini dollar’s smart contracts have undergone audits by the security firm Trail of Bits Inc. The token creation process executes through smart contracts. It requires an online key signature to mint coins within a certain limit. However, minting beyond that limit requires an offline signature, in order to enhance the security of token issuance.
Gemini Dollar FAQ
Who are the creators of Gemini Dollar?
Accomplished entrepreneurs and leaders in the digital currency industry Tyler and Cameron Winklevoss founded the Gemini Dollar (GUSD).
Tyler Winklevoss is the co-founder and CEO at Gemini, as well as the president of WinkDex and the co-founder of Winkevoss Capital. He also serves as an advisor at Rowing Blazers.
Cameron Winklevoss holds the positions of co-founder and president at Gemini. He also serves as CEO of WinkDex and co-founder of Winkevoss Capital. Likewise, Cameron too is an advisor at Rowing Blazers. Both brothers hold a Bachelor of Economics from Harvard and an MBA from the University of Oxford Saïd Business School.
How does the Gemini Dollar secure itself?
The Gemini Dollar is an ERC-20 token that runs on the Ethereum network, with smart contracts that have been audited by security firm Trail of Bits Inc. To ensure the security of the token, all private keys used to sign transactions stay in off-site, secure, guarded, and geographically-distributed facilities on a cloud storage system. These keys sit on hardware security modules (HSMs) that meet or exceed U.S. government computer security standards, such as FIPS 140–2 Level 3.
The Gemini Trust Company implements multisignature technology, or multisig, to provide added security against potential attacks and increased fault tolerance. Transactions involving the transfer of funds out of the cloud storage system require the authorization of multiple signatories, making it impossible for either Tyler Winklevoss or Cameron Winklevoss, whether individually or jointly, to transfer customer funds in or out of the hot wallet or even the cloud storage system.
What makes Gemini Dollar unique?
The Gemini Dollar is a unique stablecoin in that it is the first to receive regulatory approval from a U.S. government agency. As an ERC-20 token, its design makes it maintain a stable value and provide a transparent, compliant link between traditional finance and the blockchain industry. This is possible through advanced computation and the backing of underlying assets such as the U.S. dollar, making it distinct from cryptocurrencies like Bitcoin which can have high price volatility.
How many Gemini Dollar are there in Circulation?
The circulating supply of Gemini Dollars is 607,049,883, The current market cap of Gemini Dollar today is ~$600 million. The circulating supply and market cap determine the Gemini Dollar price. Therefore, their sum needs to be equal to ensure USD price stability. There have been significant movements in GUSD price statistics. The highest price paid for GUSD was $1.273743.
Where do I buy Gemini Dollar?
For users who are considering buying GUSD, the easiest way to do so is via well known CEXs such as Coinbase, Bitstamp and Gemini.