One of the strictest regulators just approved two stablecoins


The financial industry has not made up its mind when it comes to cryptocurrency regulation. However, one of the strictest regulators in the United States, The New York Department of Financial Services (NYDFS) has approved the launch of two stablecoins, both pegged to the US Dollar.

The investors behind the project are the Winklevoss brothers, who were previously denied a Bitcoin ETF by the SEC, and Paxos Trust.

One of the stablecoins, created by Paxos Trust, will be called Paxos Standard. The new digital asset that the Trust has created is promoted to be a competitive advantage for the company over other competitors, since the coin will provide exceptional protection of the assets of clients.

The other coin, the one that will be issued by the Gemini Trust Company, owned by the Winklevoss brothers, is naming a coin called the Gemini dollar.

Both coins will be Ethereum-backed, or more precisely compatible with ERC-20.

The regulation of the new stablecoins will be strictly followed by the NYDFS, especially for criminal activities, such as money laundering and any violations with customer funds.

While the NYDFS may be one of the strictest regulatory bodies, it also recognizes the need for financial innovation and meeting clients’ needs digitally.

The “adveritizing” of these coins is interesting, as both companies claim that this is a true revolution in the cryptocurrency space, in a sense, taking the best of both worlds: cryptocurrencies and the necessary regulation that comes from financial institutions.

 

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One of the strictest regulators just approved two stablecoins

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