Winklevoss to Patent Stablecoin Tech For Banks

The patent filling says that the system requires “trusted enterprises” responsible for the creation, exchange and destruction of tokens
03 February 2020   426

The owners of the American cryptocurrency exchange Gemini Cameron and Tyler Winklevoss have received a number of patents in the United States for a system for issuing stablecoins by commercial banks.

Six patents issued between August 2019 and January 2020 for the Winklevoss intellectual property company describe a system similar to the stablecoin model already in use by Tether (USDT) and Gemini Dollar (GUSD). The model gives users the ability to directly exchange fiat currency for its digital equivalent.

The patent says that the system requires “trusted enterprises” responsible for the creation, exchange and destruction of tokens, as well as for ensuring reserves in fiat currency in the ratio 1: 1. At the same time, the trusted company may be the Gemini exchange itself, but “other types of trusted organizations (for example, banks, trusts, etc.) can also participate in the issue, administration, redemption and / or other management” of stablecoin.

One of the patents granted on January 21 describes the tools by which organizations such as banks can quickly and efficiently create and issue new tokens to users. Trusted organizations may also be allowed to charge users a “processing fee” when releasing stablecoins.

Patents also detail the means by which stablecoins can be used as collateral “in financial transactions performed using smart contracts.” Another patent assumes that dividends from securities and other similar instruments can be paid in stablecoin.

Given the technology applications described in the patents, the system may be licensed so that it can be used by banks and other financial institutions. In addition, it is not yet clear whether Gemini will use GUSD or other tokens based on the same technology.

Binance Singapore Unit to Apply For License

Under the new law, aimed at regulating crypto paymetns and trading, firms must register with the Monetary Authority to receive a license
17 February 2020   287

Binance, a Singapore-based cryptocurrency exchange unit, has applied for a license under the new Payment Services Act, which entered into force on January 28.

We have already applied. We submitted the application pretty fast. Binance’s Singapore entity has been in close touch with the local regulators, and they have always been open-minded.


Changpeng Zhao

Founder and CEO, Binance

Under the new law, crypto companies in Singapore must register with the Monetary Authority and receive one of three licenses: an exchange of money, a standard or large payment institution. The measure is aimed at regulating payments and crypto trading using requirements for participants in the traditional finance industry. Zhao did not specify which of the licenses Binance Singapore chose.

Binance has been offering crypto-fiat trading services in Singapore since April 2019 and works with eight coins, including Bitcoin, Ethereum and XRP. The trading platform is supported by Vertex Venture Holdings, a venture division of Singapore's Temasek Holdings.