Winklevoss Patents Tout Use Case for Gemini Stablecoin Tech in Banking


The house owners of the Gemini cryptocurrency trade, the Winklevoss brothers, have gained a flurry of U.S. patents for stablecoin know-how they are saying may very well be issued by business banks.

Six patents, awarded between August 2019 and January 2020 to Tyler and Cameron Winklevoss’ mental property firm, define a system, much like the collateralized token mannequin already utilized by tether and the brothers’ Gemini greenback (GUSD), that enables customers to immediately swap fiat forex for their digital equivalents.

The stablecoin system wants “trusted entities” charged with producing, exchanging and destroying the stablecoins, in addition to holding the fiat forex collateral on a 1:1 ratio with the variety of tokens issued.

A trusted entity may very well be the Gemini trade itself, the patent says, however “different sorts of trusted entities (e.g., banks, trusts, and so forth.) might also be used to challenge, administer, redeem, and/or in any other case handle” the stablecoin as nicely.

One of many patents, awarded Jan. 21, describes a method by which entities, like banks, might create and challenge new tokens to customers rapidly and effectively. Trusted entities may be allowed to cost customers a “processing price” for minting stablecoins.

The patents additionally element a method by which stablecoins may very well be used as collateral “in monetary transactions which can be executed through good contracts.” One other suggests dividends from securities and different such devices may very well be paid out in the stablecoin.

Defending investments.

Final summer season, Gemini utilized for U.S. broker-dealer license that will permit prospects to purchase digital securities and obtain dividends, all in GUSD. The stablecoin, which launched again in September 2018, has been accredited by the New York Division for Monetary Providers (NYDFS).

Stablecoin suppliers already use banks to carry onto buyer funds. Boston-based State Avenue acts because the custodian for the greenback collateral backing the Gemini greenback. In December, the financial institution introduced it could work with Gemini to look at reporting eventualities for cryptocurrencies.

“Our patent covers the distinctive approach in which the Gemini greenback good contract interacts with the Gemini trade,” Carolyn Vadino, Gemini’s head of communications informed CoinDesk. “Our patents shield the investments we make in the analysis and improvement of our merchandise.”

Given the patents’ embodiments, it might be doable the system is being thought of for licensing it out to banks or different monetary establishments. It is also not obvious if Gemini would use the present GUSD coin or customized tokens based mostly on the identical tech. CoinDesk has reached out to make clear.

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