One of the strictest regulatory bodies in the United States has just approved the proposals from two companies that are looking to issue cryptocurrency tokens whose values are pegged to the US dollar.
According to the statement published today, the New York Department Of Financial Services (NYDFS), which is also known for the creation of the “BitLicense” framework for cryptocurrency companies, confirmed that it had given official approval for issuing the so-called “stablecoins” to two chartered companies.
One of them is the Gemini Trust Company, which is founded by the Winklevoss brothers – and the other is Paxos Trust.
Right now, the most well-known stablecoin on the market is Tether (USDT), which functions as an altcoin most frequently used on cryptocurrency exchanges where it functions as a proxy for actual USD on platforms that don’t have regulatory authority to hold fiat currency on behalf of their clients.
The two new dollar-pegged stablecoins will function just like Tether (USDT). However, analysts believe that they can serve a larger role in international commerce – in the form of USD-denominated transactions which settle in seconds, versus the fiat transactions of actual dollars which use three or more business days to settle.
A superintendent of the NYDFS named Maria T. Vullo hailed the development as confirmation that these regulatory frameworks do not inhibit innovation in the fintech sector. According to Vullo:
“As the financial technology marketplace continues to evolve, New York is committed to fostering innovation while ensuring responsible growth. These approvals demonstrate that companies can create change and strong standards of compliance within a strong state regulatory framework that safeguards regulated entities and protects consumers.”
DFS Continues to Foster Responsible Growth in New York’s Fintech Industry with New Virtual Currency Product Approvals https://t.co/hG2jWTGsRc
— NYDFS (@NYDFS) September 10, 2018
More news about the official approval will come tomorrow – exclusively on DC Forecasts.
Deloitte Features Blockchain In Its Annual Tech Trends Report
“Today, blockchain is to trust what the web was to communication: a profoundly disruptive technology that transforms not only business but the way humans transact and engage," the report notes.Deloitte also agrees that blockchain is viral, saying that the technology is “capturing both mindshare and investment is remarkable considering that a few years ago the word blockchain was known only through its relationship to cryptocurrencies. One of the areas where blockchain is likely to develop in the coming year, according to Deloitte, is the technology that includes "gateways, integration layers and common standards." However, Deloitte also shared the obstacles of implementing the technology, mainly related to the time-consuming operations, lack of standardization, high costs and complex applications.
Stellar’s XLM Token Added To Greyscale’s Crypto Investment Trust Fund
“I think the theory is a sound one,” he said about Stellar’s business proposition for bridging crypto to fiat currency conversions. An American bank may be keeping large amounts of currencies in foreign banks, and to be able to bring those balances of foreign currencies onto a balance sheet as working capital is valuable. Financial institutions won’t be required to hold balances all over the place. This will improve efficiency and shore up balance sheets for other uses.”Stellar had amazing performance especially in Q4 after striking a deal with crypto wallet provider Blockchain.com in order to start distributing XLM that is worth $125 million in an airdrop, hoping to increase bigger awareness and adoption. In the meantime, Greyscale had a mixed year in 2018 after bitcoin dropped to its 15-month low at $3,130. The company’s Bitcoin Trust was worth less than $1 billion for the first time in 2018. According to the crypto industry newsletter Diar’s research, Greyscale in the same apparently had holdings just over one percent of the total BTC in circulation. After the announcement, Stellar increased up by 1.22 percent.
SEAT Car Manufacturer To Start Working On Blockchain-Based Products Development
Bitcoin ATM Operator Coinme To Start Selling BTC At Coinstar Counting Machines
“Bitcoin is now accessible at your local grocery store via Coinstar kiosks, and this offering will make it even easier for consumers to participate in this dynamic new economy.”Coinstar, on the other hand, offers coin-to-cash conversion in their kiosks in multiple countries around the world but it still remains unknown whether the Bitcoin feature will expand just as quickly as it did in the US. Coinstar’s CEO Jim Gaherty noted: Coinstar offers coin-to-cash conversion kiosks in various countries throughout the world. It remains unknown whether the Bitcoin feature will expand beyond the U.S., while the company did not provide figures on how many machines will offer it.
“Coinstar is always looking for new ways to offer value to our consumers when they visit our kiosks.’’According to CoinATMRadar industry monitoring resource, there are more than 4187 Bitcoin ATMs worldwide and more than 60 percent or 2516 are in the United States. The market has grown plenty over the years and many operators are trying to get control of what they think to become a fairly popular trend for crypto usage.
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