The Winklevoss Brothers Receive Six Patents for Stablecoin Technology

Between August 2019 and January 2020, the founders of the Gemini bitcoin exchange, Tylerand Cameron Winklevossreceived six patents for technologies related to so-called stable coins (stablecoins). All of them can be used by commercial financial institutions, writes CoinDesk.

Patents describe a system similar to a modeltokens with collateral that is already used by Tether for the USDT token, as well as in the stablecoin Gemini Dollar (GUSD), which allows direct exchange of fiat currencies to their digital equivalent.

Gemini announced in September 2018 the launch of GUSD, pegged to the stablecoin dollar based on the ERC-20 standard.

The described system involves participation“Proxies” responsible for the creation, exchange and burning of stablecoins, as well as for ensuring fiat reserves in the ratio of 1: 1 to the number of tokens issued.

Such a proxy can be the Gemini exchange itself, however, “other types of proxies (for example, banks, trusts, etc.) can also participate in the issue, management and redemption of stablecoin.

One of the patents granted on January 21 describesmethods by which banks can quickly and efficiently issue new tokens. Trustees may also be allowed to charge users “processing fees” for processing and issuing new stablecoins.

They also describe the methods by whichstablecoins can be used as collateral "in financial transactions that are carried out through smart contracts." Another patent suggests that stablecoins can be used to pay dividends on securities and other similar financial instruments.

Last summer, Gemini applied forlicense of a broker-dealer, which will allow her to conduct activities as an alternative trading system and offer customers securities on the blockchain.

Earlier, the exchange entered into a partnership withHarbor startup, which specializes in tokenizing real-world assets, gives institutional investors the opportunity to purchase securities using the stablecoin Gemini Dollar (GUSD).