Gemini founded the token with first and foremost consideration of security and ethical transactions. Their services have been available in the UK since then. The UK FCA issues the creators of GUSD an electronic money license last year. Their savings program is available to customers in the US. Gemini is offering rates up to 100 times the national US savings account average and these aren’t even their best ones. Information about minimum APY is not available. The following table lists savings account providers and the APY on GUSD deposits. The respective smart contracts that enable transactions with the Gemini Dollar are audited by a security and R&D firm, Trail of Bits, Inc. To verify the peg, BPM, LLP, a reputable tax, assurance, and advisory firm, examines SSBTC deposits monthly. The State Street Bank and Trust Company holds US dollars corresponding to the number of GUSD in circulation. It’s regulated by the New York Department of Financial Services (NYDFS). It was created by Gemini and is widely regarded as the first regulated stablecoin in the world. David Olsson, head of institutional distribution at BlockFi, described his company as having the “largest balance sheet” within the “new breed of digital-finance firms”.Gemini Dollar (GUSD) is a stablecoin pegged to the US dollar at a ratio of 1:1. BlockFi Prime is set to provide margin trading for select cryptocurrencies, as well as automated margin lending and derivatives. The BlockFi Prime feature reaches out to asset managers, hedge funds, and even private equity corporations to extoll the virtues of cryptocurrency investments. BlockFi, which recently completed a funding round worth $500m, is already actively preparing for another round, with the platform now thought to be worth $5bn. It too has launched its own platform for the institutional investor market, titled BlockFi Prime. Rival cryptocurrency lending platform BlockFi is another that’s experiencing impressive growth of late. Gemini Earn is not the only platform to support crypto interest accounts Gemini Earn is currently available exclusively to users in the US and Singapore, although Mr Perlman revealed the platform was “actively exploring” ways to integrate Gemini Earn into other crypto jurisdictions worldwide. Recently, the Gemini Earn product has seen the launch of a Buy+Earn feature – enabling clients to set up recurring transactions of GUSD or other supported cryptocurrencies on the Gemini exchange, and have it moved directly to their Gemini Earn accounts. All loans made via the Gemini Earn platform are unsecured, exposing lenders to greater credit risk. Image created by Market Business News.Īlthough institutional clients are increasingly drawn to the greater yields available with crypto lending than conventional bank deposits, there are still substantial risks involved. Gemini’s chief operations officer, Noah Perlman, recently told The Block that institutional borrowers are attracted to digital assets to “use it to fund their operations and investment strategies”. Gemini Earn and other cryptocurrency-based lenders like BlockFi and Ledn are able to provide such competitive rates of interest – compared with traditional savings accounts – due to the accelerated demand for crypto assets among institutional clients. The Gemini Earn program already supports a string of established cryptocurrencies like Bitcoin and Ethereum. The daily interest begins to accrue from 4pm ET on the subsequent business day after crypto holdings are transferred to Gemini Earn. In exchange, investors will rake in interest worth over 100 times the national average rate of interest in traditional US savings accounts – which is currently below 0.05% per year.Īccording to Buy Bitcoin Worldwide, the biggest differentiator between Gemini Earn and other leading cryptocurrency interest platforms is that the former pays its interest daily. Gemini Earn attempts to incentivize crypto investors to buy and hold GUSD. Although Gemini Earn already supports interest on DAI, this is considered an algorithmic stablecoin that’s not underpinned by fiat currency. The Gemini USD stablecoin is the first stablecoin to be pegged to the US dollar and made available via its Earn service. Gemini, one of the world’s leading cryptocurrency exchanges and founded by the infamous Winklevoss twins, recently unveiled its Gemini Earn product, enabling crypto investors to earn interest on their digital assets in the same way as fiat currencies. Gemini Exchange’s Earn product has confirmed support for the GUSD stablecoin, with owners of GUSD able to earn 7.4% annual interest.
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