Digital Securities and Stablecoins to Benefit from ‘Wave of Innovation’

The Future is…

Fresh off the launch of their first marketing campaign, Cameron and Tyler Winklevoss recently sat down with ‘Balancing the Ledger’. In this interview, the twins discussed cryptocurrencies at large. The overall theme was regulation; what Gemini is doing to support it? and where is it needed?

Two areas in which the twins see much promise are stablecoins, and of course, digital securities.  For example, speaking on the promise of tokenized securities, it was stated, “The ICO mania of 2017 – we kind of view that as the pets.com of the securities token world. They were unregistered and it was crazy town for about six months there. I think the next wave will see the real innovation, and the really interesting assets that become tokenized – like real estate, like buildings that are not currently really traded in liquid fashion. So that’s exciting.”

Working together

One interesting takeaway from the interview was the twins’ perspective on the relationship between stablecoins and digital securities. They noted that security token issuers could capitalize on the benefits of stablecoins, by using them to issue dividends.

Stablecoins are designed to inherently have less volatility than regular cryptocurrencies.  By using them to issue dividends to token holders, issuers would be able to capitalize on the efficiency of a digital currency, while reducing exposure to volatility.

Regulation a good thing

Regulation can be a difficult balancing act between allowing innovation, yet ensuring safe practices. Despite this difficulty, it is still a necessity. Multitudes of investors have lost fortunes on un-regulated ICOs, as made evident throughout the last two years.

It is this very problem that has led to the popularity of the regulated digital security offering. The twins echo this sentiment, as seen in their marketing campaign, pushing for a regulated crypto.

Gemini

The Gemini headquarters are in New York.  The company was founded in 2014, and is a product of cofounders Tyler and Cameron Winklevoss. Above all, Gemini acts as both a custodian and exchange for digital assets. In the time since its inception, Gemini has taken a unique approach to growth, by embracing regulation from day 1.

When asked if Gemini would venture into other sectors, Cameron indicated a desire to expand into digital securities. He stated, “Virtual securities tokens is a real thing – and those sort of backed by real assets, there is a bright future there, and we may move into that.”

Winklevoss Twins

It is hard to find someone that hasn’t heard of the Winklevoss twins. They are Olympic Athletes, that have gone on to be wildly successful in the world of finance.

The brothers, Tyler and Cameron, are currently enveloped in advancing the world of blockchain. As they are believed to be one of the largest holders of Bitcoin in the world, this is no wonder. They closed out their interview by jokingly saying that ‘only Satoshi has more’.

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