Gemini Dollar (GUSD): Will It Triumph The Stablecoin Space?

Gemini dollar (GUSD) merges the price stability and creditworthiness of the US Dollar along with the upgraded technologies utilized by a cryptocurrency.

GUSD is a stablecoin backed by the US Dollar and is held in FDIC-insured bank accounts. The BPM LLF accounting firm regularly audits the reserves fund on a monthly basis.

Created by crypto exchange Gemini, founded by Cameron and Tylor Winklevoss in the year 2014. Gemini is a privately owned crypto exchange that got approval from the New York Department of Financial Services (NYDFS) to roll out its stablecoin in 2018.

Although Paxos launched a stablecoin regulated by NYDFS on the same day, according to the Gemini, GUSD is the first regulated stablecoin. The Gemini Trust Company LCC possesses USD deposits that are proportional to the tokens in circulation.

The Gemini Dollar is an ERC 20 standard token built on the Ethereum network. The smart contracts are audited by Trail of Bits lnc, a significant information security research, and development firm.

What Vision does Gemini Dollar hold?

The Gemini Founders have highlighted that the Gemini Dollar focuses on filling the gap between traditional finance and the crypto space. The Winklevoss brothers emphasize on the fact that their stablecoin is distinct because it is regulated by the New York Department of Financial Services (NYDFS).

The Surfacing of The Gemini Dollar

Gemini Trust Company is the only issuer of the Gemini Dollar, launched in September 2018. The company holds its US Dollar reserves backing its stablecoins in Boston’s State Street Bank.

GUSD is insured via the FDIC deposit insurance program. All the registered users are facilitated to convert USD to Gemini Dollar and can then deposit them to an Ethereum wallet. And Gemini adjusts its holdings to correspond to the number of tokens in circulation.

Because the Gemini Dollar is built on the Ethereum network, the creation of tokens comes from an executable smart contract. And the primary feature is that the contract for the supply increases can be signed by an online key only up to a specific limit. And following the exceed of that limit, an offline signature is required. This feature aims to make sure that the issuance of tokens is secured.

Attributes of Gemini Dollar

The execution of Smart Contracts needs a multi-signature scheme of approval for a high-risk action that further requires an offline signature for added fault tolerance. And following the approval, the specific actions are time-locked for a duration of detection or response to security incidents. And any pending actions can be nullified to prevent malicious acts by any entity. Hence, Gemini Dollar comes with an enhanced network and security.

Unlike other virtual currencies, Gemini Dollar does not have a particular circulation schedule; instead, it is pegged and backed by the US Dollar in an equal proportion.

To maintain transparency, the Gemini Dollar (GUSD) ledger is stored on the Ethereum blockchain; hence all the concerned entities can view the total GUSD circulation at any given time.

How Can Folks Mobilize Gemini Dollar?

While a customer carries out a withdrawal from the Gemini platform, Gemini Dollars are created at that very time. They can be further transferred to any Ethereum address that the user wants. The Gemini Dollar worth of US Dollars is debited from the user’s account when withdrawn and is credited when deposited.

The Fees Charged by the Gemini’s native exchange are absolutely nil when buying or selling the Gemini Dollars (GUSD). Although, the Ethereum gas fees might apply once the tokens are moved off its platform.