Bibox, one of the top 10 cryptocurrency exchanges by adjusted trading volume, said on Tuesday it is the first trading platform to list Gemini Dollar (GUSD), the stablecoin released just a day earlier by US billionaire investors Cameron and Tyler Winklevoss.
The young Chinese exchange offers almost 200 trading pairs, including its own token (BIX), which recorded a $67 million trading volume over the past 24 hours. Bibox hasn’t clarified which markets it will pair with GUSD.
It is likely that all current Tether (TUSD) markets will also have GUSD pairs.
Winklevoss’ stablecoin is pegged to the US dollar and has already received approval from authorities in New York.
Setting itself apart from Tether, the Gemini Dollar will have more regulatory compliance measures in place to ensure that its supply corresponds as closely as possible to a 1:1 ratio with the dollar.
To achieve distribution, Gemini chose to release its alternative stablecoin as an ERC20 token. Furthermore, a bank will take care of the actual dollar supply, ensuring that its backing is sound.
“The US dollars that correspond to the Gemini dollars issued and in circulation will be held at a bank located in the United States and eligible for FDIC ‘pass-through’ deposit insurance, subject to applicable limitations. In addition, the US dollar deposit balance will be examined monthly by an independent registered public accounting firm to verify the 1:1 peg,” said Cameron Winklevoss, one of the founders of Gemini crypto exchange.
Because of the constant verification of supply, Bibox certainly won’t be the only exchange to list it. Tether is known to have a checkered reputation due to its lack of transparency with its dollar supply, leading some people to speculate about its actual worth.
However, an independent law firm managed to gain access to fiat accounts that belong to Tether, confirming that the cryptocurrency issuer indeed may have the supply needed to account for the billions of dollars in its market capitalization.
Nonetheless, the lack of regular and transparent accounting for its supply may make GUSD a stronger contender for people who want to hedge against volatility when day-trading cryptocurrencies.