Gemini Dollar
Crypto Overview
Purpose and Utility
Gemini Dollar (GUSD) is a regulated stablecoin launched by the Gemini cryptocurrency exchange in 2018. It is designed to maintain a 1:1 peg with the US Dollar, with each GUSD token being backed by an equivalent amount of USD held in FDIC-insured bank accounts.
Business Model and Operations
The primary utility of GUSD is to serve as a stable medium of exchange and a bridge between traditional finance and cryptocurrency markets. Gemini maintains full reserves for all GUSD tokens in circulation, with regular attestations by independent accounting firms to verify the 1:1 backing. The stablecoin operates on the Ethereum blockchain as an ERC-20 token.
Real-World Adoption
GUSD has achieved notable adoption within the cryptocurrency ecosystem, particularly on the Gemini exchange and various DeFi platforms. As of 2024, it maintains a market presence with a circulation of approximately $700 million. The token is primarily used for trading, remittances, and as a stable store of value during market volatility.
Platform Development
Gemini actively maintains and updates the GUSD infrastructure, with regular security audits and compliance reviews. The development focus is primarily on maintaining stability and security rather than adding new features.
Token Distribution and Governance
GUSD tokens are minted when users deposit USD and burned when redeemed, maintaining the 1:1 peg. The system is centralized, with Gemini controlling the minting and burning process. This centralization, while limiting decentralization, ensures regulatory compliance and stability.
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.