Convert GUSD to EUR

The Gemini Dollar (GUSD) is a regulated, ERC-20 stablecoin issued by the Gemini Trust Company, a New York-based cryptocurrency exchange and custodian, and is fully backed by the US dollar at a 1:1 ratio.

Key takeaways

• GUSD is a fully regulated stablecoin issued by the Gemini Trust Company, a New York State Department of Financial Services (NYDFS)-licensed trust company.
• Each GUSD token is backed 1:1 by US dollars held in FDIC-insured accounts, ensuring price stability.
• Built on the Ethereum blockchain as an ERC-20 token, GUSD offers fast, low-cost transactions and seamless integration with DeFi platforms.
• GUSD is widely used for trading, hedging, and as a stable store of value within the crypto ecosystem, particularly on regulated exchanges like BTCC.
• The token’s supply is dynamic, minted and burned based on market demand, with a current maximum supply of 148,548,676 GUSD.

What is Gemini Dollar? Key Specifications & Tokenomics

The Gemini Dollar (GUSD) is a stablecoin pegged to the US dollar, designed to provide the stability of fiat currency with the efficiency and transparency of blockchain technology. It is issued by Gemini Trust Company, a regulated financial institution under the oversight of the New York State Department of Financial Services (NYDFS). As an ERC-20 token on the Ethereum network, GUSD benefits from the security and programmability of the world’s largest smart contract platform, making it ideal for use in decentralised finance (DeFi) applications and cross-border payments.

The tokenomics of GUSD are straightforward: each token is fully collateralised by one US dollar held in reserve accounts at FDIC-insured banks. The supply is not fixed but adjusts dynamically through a mint-and-burn mechanism. When users deposit USD into Gemini, new GUSD tokens are minted; when they redeem GUSD for USD, the tokens are burned. This ensures that the circulating supply always matches the amount of USD held in reserve, maintaining the 1:1 peg. As of the latest data, the maximum supply is capped at 148,548,676 GUSD, though this figure can change based on market demand.

Who created Gemini Dollar (GUSD)?

The Gemini Dollar was created by the Gemini Trust Company, a cryptocurrency exchange and custodian founded in 2014 by the Winklevoss twins, Cameron and Tyler Winklevoss. The twins are well-known figures in the crypto space, having been early investors in Bitcoin and founders of the Gemini exchange. They established Gemini with a strong focus on regulatory compliance and security, which directly influenced the design of GUSD.

The Gemini Dollar was launched in September 2018 after receiving approval from the New York State Department of Financial Services (NYDFS). This made GUSD one of the first regulated stablecoins in the United States, setting a precedent for transparency and consumer protection. The project is managed by a team of financial and technology professionals at Gemini, including Chief Compliance Officer and legal experts who ensure the token adheres to strict regulatory standards.

The development of GUSD was driven by the need for a stable, trustworthy digital dollar that could be used for trading, payments, and as a store of value without the volatility of other cryptocurrencies. By leveraging Gemini’s existing infrastructure and regulatory licences, the team created a stablecoin that offers institutional-grade reliability. Today, GUSD remains a key product in Gemini’s ecosystem, supporting the exchange’s trading pairs and DeFi integrations.

How does Gemini Dollar (GUSD) work?

Gemini Dollar operates as an ERC-20 token on the Ethereum blockchain, meaning it relies on Ethereum’s Proof-of-Stake (PoS) consensus mechanism for transaction validation. However, unlike native cryptocurrencies such as Ether (ETH), GUSD is not mined or staked for rewards. Instead, its value is maintained through a simple collateralisation model: each GUSD token is backed by one US dollar held in reserve by Gemini Trust Company.

The process of creating and redeeming GUSD is central to its functionality. When a user deposits US dollars into their Gemini account, the exchange mints an equivalent amount of GUSD tokens on the Ethereum network. Conversely, when a user wants to redeem GUSD for fiat currency, the tokens are burned, and the corresponding US dollars are released from reserve. This mint-and-burn mechanism ensures that the supply of GUSD always matches the amount of USD held in reserve, maintaining the 1:1 peg.

To guarantee transparency, Gemini engages a third-party auditor to conduct monthly attestations of its reserve accounts. These reports are published publicly, allowing users to verify that the number of GUSD tokens in circulation is fully backed by US dollars. Additionally, the token’s smart contract is open-source and audited by reputable firms, ensuring that the minting and burning processes are secure and tamper-proof. This combination of regulatory oversight, regular audits, and blockchain transparency makes GUSD one of the most trustworthy stablecoins available.

What makes Gemini Dollar (GUSD) unique and valuable?

The Gemini Dollar stands out in the crowded stablecoin market due to its strong regulatory foundation and commitment to transparency. Unlike many stablecoins that operate in a regulatory grey area, GUSD is issued by a NYDFS-licensed trust company, subjecting it to rigorous oversight, including capital reserve requirements, anti-money laundering (AML) checks, and regular examinations. This regulatory compliance provides Canadian investors with a high level of confidence that their funds are safe and that the token is not subject to sudden de-pegging or operational risks.

Another key differentiator is the monthly attestation of reserves by an independent auditor. While some stablecoins only provide quarterly or annual reports, GUSD’s monthly attestations offer near-real-time verification of its backing. This transparency is particularly valuable for institutional investors and businesses that require reliable stablecoins for treasury management or payment processing. The public availability of these reports allows anyone to independently verify the 1:1 backing, reducing the risk of fraud or mismanagement.

Furthermore, GUSD’s integration with the Gemini ecosystem provides additional utility. It can be used for trading on the Gemini exchange, earning interest through Gemini Earn (where available), and participating in DeFi protocols on Ethereum. For Canadian users, GUSD offers a stable, regulated alternative to other stablecoins like USDT or USDC, especially for those who prioritise compliance and transparency. Its ERC-20 standard also ensures compatibility with a wide range of wallets and decentralised applications, making it a versatile tool for both retail and institutional investors.

What is Gemini Dollar (GUSD) used for?

Gemini Dollar is primarily used as a stable medium of exchange and store of value within the cryptocurrency ecosystem. Its most common application is as a trading pair on exchanges, allowing traders to move in and out of volatile assets without converting back to fiat currency. On platforms like BTCC, GUSD can be used to trade against other cryptocurrencies, providing a stable base for hedging strategies and arbitrage opportunities.

Beyond trading, GUSD is widely used in decentralised finance (DeFi) applications. As an ERC-20 token, it can be deposited into lending protocols like Aave or Compound to earn interest, used as collateral for loans, or added to liquidity pools on decentralised exchanges (DEXs) like Uniswap. This makes GUSD a key component of the DeFi ecosystem, enabling users to generate yield on their stable holdings while maintaining the security of a regulated asset.

For businesses and individuals, GUSD serves as a reliable payment method for cross-border transactions. Its low transaction fees and fast settlement times on Ethereum make it an attractive alternative to traditional bank transfers, which can take days and incur high costs. Additionally, GUSD is used by institutional investors for treasury management, providing a stable digital asset that can be easily transferred and audited. In Canada, where regulatory clarity is valued, GUSD offers a compliant option for those looking to integrate stablecoins into their financial operations.

How to buy GUSD Coin?

GUSD is a popular stablecoin listed on many exchanges. However, it is recommended to trade on a major platform like BTCC exchange for higher liquidity and better customer support.

1. Register a BTCC Account: Sign up using your email or mobile number and complete the KYC verification to unlock more features and benefits of the platform.
2. Deposit Funds: Deposit fiat currency (via bank transfer, card, or third-party payment) or transfer USDT from an external wallet into your BTCC account. You can follow this guide.
3. Start Trading: Go to the trading page and search for the spot trading pair GUSD/USDT or the perpetual contract GUSD/USDT.
4. Place an Order: Enter the amount of GUSD you wish to purchase and submit the order. For contract trading, you can also choose to go short (sell) and adjust the leverage multiplier according to your strategy and risk tolerance.
5. Confirm Your Purchase: For spot purchases, check your personal account to see if the coins have arrived. For contract trades, check the trading page to see if your order was filled successfully.