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Gemini Stablecoin Launches as World First

A bit of an understatement, but it’s a massive day for the crypto industry. On Monday, the Winklevoss twins announced the launch of the Gemini stablecoin, a regulated cryptocurrency backed by USD.

Here’s why this is significant crypto news.

Introducing the Gemini Stablecoin

There are multiple reasons to be optimistic about the Gemini dollar, aside from it being the world’s first regulated stablecoin.

For starters, the Gemini stablecoin will be pegged to the United States dollar at 1:1. Second, the Gemini dollar will allow individuals to both send and receive USDs on the Ethereum network. To do so, users will be using ERC20 tokens.

To simplify, users can convert USD into Gemini dollars, and vice-versa.

Third, the launch of the Gemini dollar indicates that the Winklevoss twins have not been scared away from the crypto industry. Last month Tyler Winklevoss said that the Gemini Trust Co had been considering launching a stablecoin for a while. However, when factoring in things like SEC rejections and the downturn in the Bitcoin price, you could foresee the possibility of this not happening.

That’s not the case though. And we’re glad to see the Gemini dollar hitting the market. After all, stablecoins are starting to become more and more popular, and, according to Gemini Trust Co., the Gemini dollar “combines the creditworthiness and price stability of the U.S dollar with blockchain technology” as well as the “oversight of U.S. regulators.”

The Crypto Market Reacts

Everyone seems pretty excited. Various mediums are covering the stories, the Winklevoss twins are active on social media, and numerous well-known crypto players have joined the conversation.

One crypto player even said this is a sign that the crypto industry is maturing, which seems accurate. Thanks to the Gemini dollar, the gap between conventional banking and the crypto market will close.

>> The US SEC Ceases Trading on Two Exchange-Traded Notes

The Takeaway

What do you think about the launch of the Gemini stablecoin? Let us know in the comments below!

Featured Image: wikipedia

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New Stablecoin Stronghold | Has IBM Support For Blockchain Payments

Fintech startup Stronghold has created a new stablecoin token dubbed the ‘Stronghold USD’ and it has received support from IBM. The token is launched on the Stellar network.

Stronghold is the first ever stablecoin to use the Stellar network and is reportedly backed by the US dollar at a 1:1 price ratio.

IBM and Stellar

IBM has been using the Stellar network since 2017 for cross-border payments and has now adopted the new stablecoin to enhance this process.

According to IBM’s senior vice president of global industries, platforms, and blockchain, Bridget van Kralingen, the new token represents a “tremendous opportunity” to improve blockchain payments currently undertaken by IBM.

IBM had been using Stellar’s native token, the Lumen (XLM) to facilitate fiat currencies by exchanging existing fiat’s into XLM for making transactions on the blockchain. One problem though is that this system is exposed both to intra-fiat exchange rates and volatile cryptocurrency rates.

However, using the Stronghold token eliminates the variables of the exchange rates and will play a big role in improving costs. This is because its worth remains stable no matter how the crypto market changes as it is backed by the dollar. Unlike regular cryptocurrencies which are backed by pure speculation as opposed to a tangible asset determining the price. These coins can be easily manipulated on a moment-by-moment basis by news or opinion.

Other Stablecoins

Van Kralingen also said that other stablecoin projects “pegged to national fiat currencies other than the U.S. dollar” would also be of value for IBM’s blockchain integration.

Malta-based Stasis only recently launched its own stablecoin backed by the euro on a 1:1 rate.

>>Coinbase Gets Approval to List Coins That are Securities

Tether is also one of the more famous, albeit controversial, stablecoins on the market. It too claims to be backed by the US dollar at a 1:1 ratio.

Stablecoins have been gaining increasing traction as they may be one of the key ways to protect coins from the volatility of cryptocurrency markets. Price volatility is one of the major concerns for vendors about adopting these assets, as the value is forever changing.

Featured Image: Deposit Photos/Jaffarali

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New Stablecoin Backed by the Euro, EURS

A Malta-based company Stasis has launched a new stablecoin called EURS. EURS is backed by the Euro and should trade on a one-for-one basis. The coin has been built on the Ethereum EIP-20 standard platform and has already begun trading on London-based exchange DSX already.

DSX predict the order volume to reach $500 million USD by year-end.

Stablecoins: EURS and Tether

Anyone familiar with Tether may scratch their beard dubiously at the EURS coin. But why?

Firstly, it is important to know that a stablecoin is the name given to a coin that is backed by an actual tangible asset, and in Tether’s case, its company claims that every tether coin on the market is backed by one US dollar — similar to Stasis’ claim about the EURS coin (except a different currency).

Every Tether is said to be tradeable on a one-for-one basis with the dollar. However, for months, controversy has surrounded this claim as it has never been legitimately proven. Also, the company’s terms and conditions state that “Tether reserves the right to refuse to issue or redeem Tether Tokens”, and some fear this give the company credence to not redeem the currency at the one-for-one value it claims.

Stasis 

Stasis will have to prove the true value of the EURS coin to gain market trust. There is no denying that stablecoins can bring more stability to the crypto world; providing an easier way for people to get in and out of a position and the demand for such an asset is certainly there. EURS will be effective on exchanges in lieu of fiat currency. In such a case, traders can trade their fiat for EURS and then enter an exchange with EURS, safe in the knowledge that the value of their currency will remain the same no matter the volatility of market prices. Not having to use fiat currency means that money can be moved between crypto exchanges without having to use wire transfers.

So in theory, anyone who holds EURS will have nothing to worry about because at any given time the tokens can be redeemed for real Euros.

Gregory Klumov, Stasis CEO stated: “EURS bridges the gap between traditional finance and the cryptoeconomy…While cryptocurrency trading is currently dominated by individual and retail investors, STASIS and EURS will pave the way for institutional investors to enter the game and begin allocating capital – that’s what’s needed to take the industry to surpass the trillion dollar mark.”

Stasis adds that EURS was specifically developed to satisfy growing demand for cryptocurrencies from European institutional investors.

Last week, Malta brought three new bills into law. Their purpose? To encourage cryptocurrency businesses to set up shop there. Stasis has announced it will obtain a license under this new regulatory framework.

>>Malta is a Blockchain Powerhouse; Passes Three New Crypto Bills

Silvio Schembri, the Maltese Minister for Financial Services, Digital Economy and Innovation said on the matter:

“We therefore welcome any blockchain initiatives such as STASIS that while being innovative, will still respect and encourage compliance and we look forward to the company applying for a licence under our DLT regulatory framework.”

Featured Image: Deposit Photos/michaklootwijk

 

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