GUSD: The reconstruction of trust in stablecoins, moving towards a new stage of practicality and profitability.

On October 8, 2025, against the backdrop of a steadily developing global crypto assets market, the stablecoin sector is undergoing a new round of reshuffling. GUSD (Gemini Dollar), launched by Gemini, is becoming one of the most trusted USD stablecoins in the market due to its compliance background and transparent audit mechanism. Unlike previous stablecoins that purely pursued price anchoring, GUSD is advancing towards a new stage of practicality and value enhancement through innovative yield models and asset tokenization mechanisms.

1. What is GUSD: Dual Assurance of Compliance and Transparency

GUSD was issued by the US compliant crypto exchange Gemini in 2018 and is one of the first stablecoins to receive regulatory approval from the New York Department of Financial Services (NYDFS). Each GUSD is backed by a bank reserve of 1 USD or short-term US Treasury bills, and is verified monthly by an independent auditing firm.

This strict regulatory and auditing mechanism gives GUSD a natural trust advantage in the stablecoin market. Compared to USDT or USDC, GUSD places greater emphasis on compliance and transparency, gradually forming a robust brand recognition among institutional and individual investors.

As of October 2025, GUSD has been widely used across multiple mainstream exchanges, DeFi platforms, and payment networks, with its on-chain circulation continuing to grow.

2. The Transformation of the Stablecoin Market: From Payment Tool to Yield Asset

In the past, the main function of stablecoins was for hedging or as a medium for transactions, but now the market is undergoing fundamental changes. With the development of DeFi, Real World Assets (RWA), and on-chain wealth management, stablecoins are no longer just "digital dollars"; they have become new vehicles for yield.

GUSD is actively laying out in this direction. By collaborating with compliant financial institutions, a portion of GUSD's reserve funds has been tokenized for investments in short-term government bonds and money market funds. Users can indirectly enjoy on-chain yield distribution while holding GUSD, achieving "stablecoin yield generation."

This model meets regulatory requirements while enhancing the attractiveness of stablecoins, making GUSD an important bridge between traditional finance and the crypto world.

3. Advantages of GUSD: Security, Compliance, Stability

1. Compliance and Transparency GUSD is one of the few stablecoins globally that is strictly regulated by U.S. financial regulatory agencies, with all reserve funds held in bank accounts protected by FDIC insurance, ensuring a high level of transparency.
2. Strong on-chain compatibility GUSD operates on the Ethereum network, is compatible with the ERC-20 standard, and has supported multi-chain cross-bridges (including Arbitrum, Polygon, Base, and other Layer 2 networks), greatly enhancing liquidity and trading efficiency.
3. High Security Standards Issued by Gemini Trust Company, it adopts a multi-layer security system, including cold wallet reserves, two-factor authentication, and real-time on-chain monitoring to ensure the safety of user assets.
4. Can be used in various scenarios GUSD can not only be traded and settled on exchanges but is also widely used in DeFi lending, NFT trading, Web3 payments, and stablecoin wealth management, making it a practical and expandable asset carrier.

4. The Ecological Integration of GUSD and Gate

In the Gate ecosystem, GUSD plays an increasingly important role. With the continuous improvement of Gate Layer and Gate Earn, GUSD has been incorporated into multiple yield products and Launchpool activities.

• Gate Earn Wealth Management: Users can participate in 7-day or 30-day fixed-term wealth management by locking GUSD to obtain stable returns;
• Launchpool activity: The recent 324th Launchpool has launched the "GUSD Wins LIGHT" activity, further expanding the use cases of GUSD.
• Liquidity support: In decentralized trading products such as Gate Perp DEX, GUSD, as one of the settlement assets, enhances trading stability and capital efficiency.

This ecological linkage makes GUSD not just a stablecoin, but one of the key tokens for participating in the Gate Web3 ecosystem.

5. Challenges and Future: Trust Competition in the Context of Stablecoin Rivalry

Although GUSD has a strong foundation of compliance and trust, it still faces competition from giants like USDT, USDC, and DAI in the global stablecoin market. The focus of the future stablecoin competition will no longer be on "anchoring accuracy," but rather on "asset transparency, yield distribution mechanisms, and compliance expansion capabilities."

If GUSD can continue to focus on asset-backed yields and cross-chain interoperability, it is expected to become the preferred solution for institutional-grade stablecoin applications. At the same time, as the regulatory framework for stablecoins becomes clearer in the United States and Europe, the legitimacy and brand value of GUSD will further stand out.

6. Conclusion: GUSD, Redefining the Value Logic of Stablecoins

The rise of GUSD represents a new direction for stablecoins - not just an extension of the digital dollar, but a comprehensive asset that balances compliance, security, and returns.

Under the wave of DeFi and RWA, GUSD is evolving from a "passive trading medium" to an "active value carrier."

Whether in the Gate ecosystem, Web3 payment systems, or global institutional investment allocation, GUSD is gradually establishing its own new standard for stablecoins.