Gemini Dollar
Crypto Overview
Purpose and Utility
Gemini Dollar (GUSD) is a USD-backed stablecoin launched by the Gemini cryptocurrency exchange in 2018. Each GUSD token is backed 1:1 by US dollars held in FDIC-insured bank accounts. The primary purpose is to provide a stable, regulated bridge between traditional banking and cryptocurrency markets.
Business Model
GUSD operates as a regulated stablecoin under New York banking laws. The business model involves maintaining dollar reserves equal to the tokens in circulation, with regular audits by accounting firm BPM to verify the 1:1 backing. The model is transparent and straightforward - users can mint GUSD by depositing USD on Gemini and redeem GUSD for USD at any time.
Real World Adoption
GUSD has achieved meaningful adoption within the crypto ecosystem, particularly on Gemini's platform and various DeFi protocols. As of 2024, GUSD has a market cap of approximately $640 million with daily trading volumes in the millions. It is actively used for trading, transfers, and as a stable store of value.
Development Activity
The token operates on the Ethereum blockchain as an ERC-20 token. While not requiring extensive ongoing development, Gemini maintains the infrastructure and regularly updates compliance mechanisms. The platform demonstrates strong operational stability and security measures.
Token Distribution
GUSD has a straightforward token distribution model where new tokens are only minted when corresponding USD deposits are made. There is no pre-mine or founder allocation, as tokens are created and destroyed based on user deposits and withdrawals.
Crypto Impact
To assign a comfort level investing in Gemini Dollar from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Gemini Dollar.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.