Introducing two new stablecoins, Gemini Dollar and Paxos Standard, which are unlike other revealing every other day, these are approved by a financial regulator named New York Bitlicense. It seems like the day the threat around Tether rose, so did the need for developing new stablecoins to try and take the place of USDT.
These newly launched stablecoins differs from the ones releasing now and then by being regulator-approved coins. Today, New York State Department of Financial Services (DFS) announced that it had authorized Paxos Trust and Gemini Trust to enable each offering their stablecoin backed by U.S. dollar.
The Gemini Dollar (GUSD) and Paxos Standard (PAX) are categorized to be an ERC20 token sponsoring one-to-one fiat USD which stores at the US located banks, and FDIC insured banks. Maria Vullo, DFS Superintendent, stated that New York is committed to cater the innovations for the growth as the marketplace fostering new evolving financial technology.
The regulatory approval of these coins showcases the company’s dedication to creating change and establishing strong standards of acquiescence among a state regulatory framework which can safeguard approved and regulated entities and secure customers.
The process of approving the stablecoins, it requires the regulator to ensure for each company that they comply according to the requirements about anti-terror financing, money laundering, and customer protection measures. Along with that, both/the company/s promoting the stablecoins must post the terms and condition of Gemini and Paxos website which is regarding the warning to consumers.
These customer warning rules imply that the fiat currency along with the stablecoin will be forfeited instantly if the person is indicating the involvement in illegal activities. The stablecoin that is forfeited, seizure or subjected to freeze will be through a legal notice or such legal process executed by a law enforcement agency. Similarly, the stablecoin or fiat currency which will be available upon the exchange will be subjected to forfeiture, seizure or freezing and will, therefore, be permanently and wholly unusable to the customer and may destroy according to the laws enforced by the authorities involved in regulating the legal notice.
Charles Cascarilla, Paxos’ CEO and co-founder addressed their thanks to Superintendent Vullo and DFS for the regulation. He further commented on the company’s plans to enable a global and frictionless economy by using a token which is fast, redeemable, stable, audited and above all, regulated and approved. The CEO defines the standard of Paxos by mentioning it to be a “trusted digital asset.”