A regulated cryptocurrency that is directly pegged to the US dollar has been launched by global digital asset platform Liquid. The so-called stablecoin is designed to bring stability to the cryptocurrency market.

Known as the Gemini dollar (GUSD), the stablecoin will be pegged 1:1 with the US dollar, meaning it will always match its value. It has been launched to provide a cryptocurrency with the same compliance, regulation and security of a traditional fiat currency.

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The Gemini dollar is matched by real US dollars held at the State Street Global Bank, and so is eligible for federal deposit insurance coverage. This will also see it undergo regular auditing.

Launched in partnership with US-based digital asset exchange Gemini Trust Company, the stablecoin is the first of several cryptocurrencies pegged to traditional currencies that Liquid plans to release.

“We are proud and honoured to be able to offer Liquid customers the opportunity to use a stablecoin that can stand up to regulatory scrutiny,” said Liquid CEO Mike Kayamori.

“We will now explore the opportunity to develop a JPY-pegged stablecoin.”

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Trading Gemini stablecoin with Bitcoin and Etherium

Liquid will initially allow customers to trade Gemini dollars against Bitcoin and Etherium. The exchange also plans to offer trades against other cryptocurrencies in the future.

It is hoped that the Gemini dollar will help to bring maturity to the cryptocurrency market, a focus that other firms are also looking to support.

“The Gemini dollar is an obvious choice for Liquid. Both Liquid and Gemini put transparency, regulation and compliance at the forefront of our operations,” said Kayamori.

“We are excited to see Liquid’s adoption of the Gemini dollar,” said Gemini CEO Tyler Winklevoss.

“We believe a truly regulated and transparent stablecoin is a huge step forward for the ecosystem and appreciate Liquid’s support in bringing GUSD to their marketplace.”