The Gemini dollar — the world’s first regulated stablecoin — combines the creditworthiness and price stability of the U.S. dollar with blockchain technology and the oversight of U.S.
Gemini had received permission from NYDFS to begin issuing the stablecoin, which is collateralized by frequently audited USD reserves.
The first regulated stablecoin has built-in BSA/AML and OFAC controls to prevent it from being used in connection with money laundering or terrorist financing. The advantage of using a regulated stablecoin as opposed to USD is the settlement speed.
U.S. dollars that correspond to the Gemini dollars issued and in circulation are held at State Street Bank and Trust Company.
The U.S. dollar deposit balance is examined monthly by BPM, LLP, a registered public accounting firm, in order to verify the 1:1 peg.
The Gemini dollar is a cryptographic token built on the Ethereum Network according to the ERC20 standard for tokens. The code of the Gemini dollar smart contracts has been audited by Trail of Bits, Inc., an information security research & development firm, whose report is publicly available here.