The New York State Department of Financial Services has authorized limited purpose trust companies Gemini Trust Co. LLC and Paxos Trust Co. LLC to each offer a price-stable cryptocurrency pegged to the U.S. dollar, commonly known as stablecoin.
Gemini will bring to market its stablecoin, Gemini Dollar, while Paxos will offer its Paxos Standard Token.
Gemini CEO Tyler Winklevoss said that prior to the authorization, "there has been no trusted and regulated digital representation of the U.S. dollar on the blockchain."
The trust companies are required to maintain policies and procedures to address risks and apply New York's standards and regulations regarding anti-money laundering, anti-fraud, and consumer protection measures. Paxos and Gemini are both subject to charter revocation and other regulatory and/or enforcement actions, for failing to comply with any of the provisions of the approval.