The Japanese cryptocurrency exchange Liquid announced on October 2, its partnership with Gemini Trust Company LLC. Both companies join forces aiming to enhance liquidity and stability to cryptocurrency trading within a secure and fully compliant regulatory environment.
GUSD a Fully Regulated and Audited Stablecoin
Liquid, owned by the global fintech company Quoine, was launched in September and it is currently one of the largest fiat-to-crypto exchanges by volume. As such, Liquid will list the Gemini dollar (GUSD) to its platform, bearing in mind to provide traders with hedging opportunities from the highly volatile cryptocurrency markets, by utilizing the benefits of a regulated stablecoin.
GUSD will initially be traded against Bitcoin and Ethereum, while more trading pairs are expected in the future. The GUSD stablecoin is built on a secure, multi-layered protocol and pegged to the value of the American dollar. The cash reserves that back GUSD are in custody by the State Street Global Bank, and they are eligible for federal deposit insurance coverage.
As a New York trust company, Gemini is fully compliant to the standards set by the NYDFS. Hence, its balance data are being monitored by an independent, registered public account firm on a monthly basis and, similarly, the GUSD smart contracts are being audited and formally verified by an independent security firm. All reports are transparent and publicly available.
The ‘Liquid External World Book’ Improves Liquidity
Additionally, Liquid will integrate Gemini to its Liquid External World Book, a global liquidity pool that utilizes advanced technology to interconnect a network of cryptocurrency exchanges. This way, Liquidity optimizes price matching and ensures adequate liquidity on a wide selection of trading pairs.
Liquid CEO Mike Kayamori said:
“The Gemini dollar is an obvious choice for Liquid. Both Liquid and Gemini put transparency, regulation, and compliance at the forefront of our operations. We are proud and honored to be able to offer Liquid customers the opportunity to use a stablecoin that can stand up to regulatory scrutiny. We will now explore the opportunity to develop a JPY-pegged stablecoin.“
Tyler Winklevoss, CEO of Gemini, sees GUSD as a bet and hopes it will become the dominant stablecoin traders will use to move funds between platforms. He said:
“We are excited to see Liquid’s adoption of the Gemini dollar. We believe a truly regulated and transparent stablecoin is a huge step forward for the ecosystem and appreciate Liquid’s support in bringing GUSD to their marketplace.”