Winklevoss brothers receive stable coin patents

The Winklevoss brothers have obtained six patents for the production and custody of stable coins. The documents include new approaches to technical solutions for generating and issuing coins.

The Winklevoss brothers, owners of the Gemini crypto stock exchange, have received six patents for stable coins from the US Patent Office. The patents describe special methods for the production and storage of stable coins and are likely to be put to the test at the company’s own stock exchange.


Winklevoss Patents for Stable Coin Custody

The patents describe new methods for producing stable coins safely and transparently and thus respond to previous technical shortcomings. In this respect, the document states:

Winklevoss Patents for Stable Coin Custody

“The current block chain technology as implemented does not have adequate technological solutions to modify the delivery of stable-value digital tokens in connection with the direct printing of stable-value digital tokens to one or more customers.”


According to the official documents, three of the six patents (patent one, two and five) describe systems for modifying the supply of publicly available stable coins. The first patent describes how trusted intermediaries, such as stock exchanges or banks, can generate the asset according to demand. Issuers of stable coins should therefore be “trusted organisations”. These are responsible for the management, i.e. the generation, exchange and destruction of stable coins. In addition, they must hold Fiat in a ratio of 1:1 to the number of issued tokens. A suitable transshipment point would therefore be the Gemini exchange itself, but also, for example, banks and trust companies. In addition, the Winklevoss brothers propose appropriate processing fees for the production of stable coins.

Patent three and six describe a system for “generating a stable digital asset” on a public block chain. The third patent explains that coupled stable coins could be used as a reserve in financial transactions that can be processed via smart contracts.

The fourth patent relates to the “use of a digital asset of stable value to pay dividends for securities and other financial instruments linked to a block chain”. The patent describes the payment of dividends from securities, such as shares, in stable coins.

Whether the patents represent groundbreaking innovations in the stable coin ecosystem remains to be seen. However, since the Winklevoss brothers can use Gemini to play with their own playground, the patents may soon be tested on the crypto stock exchange.