The New York-based Gemini cryptocurrency exchange has announced plans to release a cryptocurrency that is back by USD named Gemini Dollars (GUSD). GUSD is an ERC-20 token which can be used on the Ethereum network. Registered users to the exchange can use GUSD to buy Bitcoin or other crypto. The token will be issued by the Gemini Trust Company for use on their platform but as the tokens are ERC-20 standard, they can be withdrawn to any Ethereum wallet.
Many investors believe Tether isn’t a trusted representation of USD as to require an alternative. GUSD is aiming to ease investors’ concerns by holding the equivalent amount of USD that correspond to the Gemini Dollars in a US regulated bank, qualifying for insurance from the Federal Deposit Insurance Corporation (FDIC). This will provide users with the assurance to buy and sell cryptocurrency freely using GUSD safe in the knowledge that their funds have protection.
Gemini are fully taking into consideration the trust of their users as an independent registered public accounting firm will examine the US dollar deposit balance monthly to verify the 1:1 holding of GUSD to USD. All the reports will be made available to the public showing their commitment to trust. By building a trusted relationship to provide services to further protect funds, we can hope more adopt and buy crypto to get involved.
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