NEW YORK- New York state's Department of Finiancial Services on Monday approved Gemini Trust Company's and Paxos Trust Company's dollar-linked digital currencies, the first stablecoins to get the nod from the regulator.
The Gemini dollar by Gemini, the digital asset exchange launched by Cameron and Tyler Winklevoss four years ago, is a stablecoin that will allow users to send and receive U.S. dollars on the Ethereum blockchain. It will be strictly pegged to the U.S. dollar on a one-to-one basis.
Paxos' stablecoin, the Paxos Standard, will also be fully collateralized by the U.S. dollar on a one-to-one basis.
"These approvals demonstrate that companies can create change and strong standards of compliance within a strong state regulatory framework that safeguards regulated entities and protects consumers,” New York state DFS Superintendent Maria Vullo said in a statement on Monday.
Both coins are available on their respective exchanges on Monday.
(Reporting by Gertrude Chavez-Dreyfuss Editing by Susan Thomas) ((gertrude.chavez@thomsonreuters.com; 646-223-6322; Reuters Messaging: rm://gertrude.chavez.reuters.com@reuters.net))
