Gemini Dollar
Crypto Overview
Overview and Intended Utility
Gemini Dollar (GUSD) is a regulated stablecoin launched in 2018 by the Gemini cryptocurrency exchange, founded by the Winklevoss twins. It is designed to be pegged 1:1 to the US Dollar, with each GUSD token backed by USD held in FDIC-insured bank accounts.
Business Model & Actual Usage
The primary purpose of GUSD is to serve as a stable medium of exchange and bridge between traditional finance and cryptocurrency markets. It enables users to hold dollar-equivalent value on blockchain networks while maintaining regulatory compliance. The stablecoin is audited monthly by BPM LLP to verify that the USD reserves fully back all GUSD tokens in circulation.
Real-World Adoption
GUSD has achieved moderate adoption, primarily within the Gemini ecosystem and some DeFi protocols. As of 2024, the total supply is relatively small compared to other major stablecoins, with approximately $500 million in circulation. The token is primarily used for trading, remittances, and as a stable store of value on various blockchain platforms.
Founder Assessment
The Winklevoss twins have maintained a strong reputation in the cryptocurrency industry. The project demonstrates high transparency, with regular audits and clear regulatory compliance. Development focus has been on security and stability rather than marketing hype. The founders maintain significant control through Gemini Trust Company but operate under strict regulatory oversight.
Technical Implementation
GUSD operates on the Ethereum blockchain as an ERC-20 token. The smart contract includes security features such as upgradability and blacklisting capabilities for regulatory compliance. The technical implementation focuses on security and reliability rather than complex financial products.
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”.
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