Gemini and Harbor
In a continuing trend, the digital securities sector has continued its adoption, and utilization, of stablecoins. Adding fuel to this trend are now Harbor and Gemini, as this pairing has indicated a new working relationship.
This relationship is described as an exclusive one, which will see Gemini Dollar (GUSD) used by Harbor throughout their tokenization platform. Investors and token issuers will now have the ability to utilize GUSD for both funding, and distribution, while benefiting from low levels of volatility.
By operating in this fashion, clients making use of GUSD can enter and exit crypto markets with ease, and reduce exposure, not only to volatility, but to fees and long wait times.
Upon releasing this news, the CEO of each, Harbor and Gemini, took the time to express their thoughts on this partnership. The following is what each had to say regarding this development.
Josh Stein, CEO of Harbor, stated,
“The Gemini dollar is a natural fit for Harbor given Gemini’s regulatory oversight and our shared institutional approach to the digital asset market,” said Josh Stein, CEO of Harbor. “Through integrating with the Gemini dollar, Harbor has created a fully-compliant solution to investing in digital securities offerings and receiving distributions.”
Tyler Winklevoss, CEO of Gemini, stated,
“Stablecoins like the Gemini dollar bring U.S. dollars onto the blockchain, while Harbor brings private investments onto the blockchain. The combination of the two has the potential to bring unprecedented access, liquidity, and capital formation to private investments and tremendous benefits to investors.”
Not So Stable
Gemini Dollar, among other stablecoins, stands to benefit greatly from recent events pertaining to the embattled ‘Tether’. Representing the industry’s long-used ‘default’ stablecoin, Tether has recently been found to not have sufficient backing for its assets.
With stablecoin touting 1:1 dollar backing for each of their tokens in circulation, it took many by surprise, the extent to which Tether reserves have fallen short. In a recent statement from a lawyer working with Tether, it was found that the company only has roughly 74% backing for its tokens.
Stuart Hoegner stated, in the affidavit, “Tether has cash and cash equivalents (short term securities) on hand totaling approximately $2.1 billion, representing approximately 74 percent of the current outstanding tethers.” While clients are ensured that this will not affect them in any negative manner, many are not fully convinced.
This development will surely see many Tether users flee, and seek out rival stablecoins such as USDT, GUSD, and others – helping their adoption along the way.
Gemini Dollar (GUSD)
This popular stablecoin is a product of the Gemini exchange, and its founders Tyler and Cameron Winklevoss. The purpose of this stablecoin is to provide industry participants with a USD substitute, which offers the stability of USD, while benefitting from the inherent traits of blockchain technology.
This unique structuring has led stablecoins to be adopted in increasing fashion within the digital securities sector.
Harbor is a United States based company which specializes in the tokenization of assets. Through a versatile technology stack, Harbor is able to help clients throughout the entire process of creating, selling, issuing, and managing digital securities.
Company operations are overseen by CEO, Joshua Stein. Harbor is notably backed by investors such as Pantera Capital, Craft Ventures, and more.
In Other News
Harbor has made our news feed various times in recent months, in both positive and negative light. In addition to their industry contributions, stablecoins have also had an influence on the digital securities sector in recent months. Here are a couple of articles demonstrating each of these points.