Winklevoss twins win stablecoin patents
The patents awarded between August 2019 and January 2020 will be used mostly in commercial banking
Tyler and Cameron Winklevoss, who founded the crypto exchange Gemini, won six patents related to stablecoins between August 2019 and January 2020.
According to the United States Patent and Trademark Office (UPSTO), the first patent was awarded on August 6, 2019, and the latest on January 21, 2020.
The documents describe a system that is similar to the model used by Gemini dollar (GUSD), launched by the twins.
While some patents describe the process of generating stable value digital assets, others define how financial institutions should deal with them.
The Winklevoss twins believe that the institutions would need "trusted entities" that would generate, exchange and destroy stablecoins. They will be responsible for binding them to the selected fiat currency on a 1:1 ratio.
Crypto exchange Gemini is mentioned as a possible partner for such needs. However, other participants in the financial market, such as banks and trusts, may also be responsible for the issuance of stablecoins.
The latest patent describes how the institutions could create and issue new tokens, while charging the regular fee for this "mining" of new digital assets.
Moreover, the patents mention stablecoins as a means of payment for the financial transactions performed via smart contracts. Another use case cites stablecoins as a sage instrument to pay dividends from securities and shares.
The Winklevoss twins have encouraged the financial world to join crypto trading. Their exchange Gemini, founded in 2014, is marketed as a regulated platform that makes trading crypto easier.
In December, the Winklevoss twins appointed Julian Sawyer, the co-founder of digital business bank Starling Bank, as the managing director of Gemini Europe as they look to take their cryptocurrency exchange and custodian into Europe.
FURTHER READING: Stablecoin definition