Introduction to Stablecoins and GUSD Basics

What are Stablecoins? In cryptocurrency, stablecoins are a type of digital asset designed to maintain a stable value by pegging to a reserve asset (usually a fiat currency like USD). Unlike volatile coins like Bitcoin, stablecoins offer price stability, making them useful for everyday transactions and as a store of value. For example, popular stablecoins like USDT or USDC aim to stay equal to $1.00 in value at all times by being backed 1:1 with real USD or equivalent assets in reserve.

Why Stablecoins Matter: Stablecoins bridge the gap between traditional money and crypto. They allow traders to quickly move in and out of crypto positions without converting to fiat, and they provide a safe harbor during market volatility. Essentially, stablecoins combine the 24/7 speed of crypto with the reliability of fiat currency.

Introducing GUSD: GUSD is Gate’s (different from Gemini Dollar) newly launched innovative yield-bearing investment certificate, officially introduced in August 2025. GUSD is described as an “investment certificate” supported by real-world assets (RWA) like U.S. Treasury bonds. In simple terms, GUSD maintains a stable 1:1 value with the US dollar*and generates yield from safe traditional investments. This makes GUSD a low-risk, stable asset that not only preserves value but also earns interest over time, effectively bringing steady traditional finance yields into the crypto world. Gate.com created GUSD to offer users a *safer, more predictable option for holding value in crypto. It’s ideal for beginners who want stability, and for intermediate users seeking a reliable place to park funds and earn passive returns.

Backed by US Treasuries, $GUSD offers up to 4.40% annual returns with easy redemption in $USDC. Learn more: https://t.co/Zn7uruMULG

Key Characteristics of GUSD:

• Pegged to $1.00: Like other USD stablecoins, GUSD’s value is anchored around $1.00. This means 1 GUSD is intended to be equivalent to 1 US Dollar in value.
• Backed by Real Assets: Each GUSD is fully backed by real-world financial assets (e.g. U.S. Treasuries), which are stable and yield interest. This backing ensures trust that GUSD is redeemable for real value.
• Interest-Bearing (Investment Certificate): Unlike USD-pegged stablecoins that only preserve value, GUSD accrues investment returns from its underlying assets. Upon redemption, holders of GUSD receive both the principal and accumulated earnings in a single payment, making it more like a yield-bearing investment certificate (details in Module 2).
• Issued by Gate.com: GUSD is a product of Gate.com, a crypto exchange that has been operating since 2013. Gate.com’s long track record in the industry (serving over 36 million users worldwide) adds credibility to the GUSD project through proven security measures and transparency practices.

In summary, GUSD is not a traditional stablecoin but an innovative tokenized asset that combines dollar-pegging with investment certificate features. This introduction sets the stage – next, we’ll dive deeper into how exactly GUSD works under the hood and what makes it different from other stablecoins.