AltcoinsBusiness & Finance

Gemini Dollar and Paxos Standard are Set To Take Flight Against Giants

New York State has allowed two financial technology companies, Gemini and Paxos Trust, to launch stablecoins that are pegged to USD. Stablecoins has seen much success this year. These two latest stablecoins are stepping against many widely popular and firmly griped stablecoins such as Tether, Basis etc. Colton Robtoy, Chief Investment Officer of i94 Capital​, a cryptocurrency​ Hedge fund, enlightened BlockPublisher with his take on the competition provided to latest stablecoins by Tether. Upon questioning the possibility of replacement Tether by these stablecoins, he said,

On Exchanges: I don’t believe it will happen until Tether fails. $2.6B is the amount traders are willing to spend each day maintaining the Tether $1 peg….260x larger than any other Stablecoin. USDT also has lowest trading Spreads………Off-Exchanges (aka Payments): Will replace USDT.

Gemini dollar

Winklevoss twins, Cameron and Tyler Winklevoss, have gone through several rejections in the past, This week, finally, New York Department of Financial Services (NYDFS) has granted permission to their cryptocurrency platform, Gemini, to launch their own stablecoin. Gemini dollar is expected to provide transparency more than any other stablecoin. Tyler Winklevoss mentioned that the new cryptocurrency and its dollar reserves will be audited by San Francisco-based firm, BPM. According to him, the trust issue is not addressed by any other stablecoin competitor. He said:

We don’t think anyone’s solving for the trust problem… (Audits have)been lacking in the market up to this point.

Winklevoss has explained that Gemini is fulfilling its fiduciary duty i.e prioritizing customer’s needs over firms’s needs. Gemini is believed to fulfill the mission of company which reads:

With the Gemini dollar, we continue to deliver on our mission — to build the future of money — and help transform the global financial system to enable possibilities previously unimaginable.

Paxos Standard

Paxos Trust Company also got approval for its stablecoin, Paxos Standard. Chad Cascarilla, Paxos Chief Executive Officer, told that Withum would be auditing the Paxos Standard. Furthermore, he also said that USD backing his stablecoin will be stored in banks of USA. He said:

The biggest thing this is doing is solving the plumbing issues in the crypto space….Our business is trust. We’re not just doing this off some very light forms of regulation.

Paxos trust was trying to mobilize assets anywhere at anytime in past. Paxos trust has employed blockchain technology to move assets anytime with an auditable chain of title. With Paxos Standard, payment, besides asset, will be made possible to be moved.

NYDFS’s allowance has made both stablecoins as the first regulated stablecoins of the world. They have started their journey with the boost from NYDFS and therefore are expected to prosper. But as said by Colton Rotboy, they have long way to match competitors like Tether.

Fatir Malik

Electrical engineer by profession, turned into blockchain developer. Fatir contributes regularly with his insights about latest developments in fintech sector. Contact the editor at editor.opinions@blockpublisher.com

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