What is GUSD?
Gemini Dollar (GUSD) is a stablecoin created by Gemini. It is pegged at a 1:1 ratio to the U.S. dollar and has been dubbed the “world’s first regulated stablecoin.” This is because it is authorized by the New York Department of Financial Services (NYDFS).
For every GUSD issued and in circulation, there is a corresponding U.S. dollar held in the State Street Bank and Trust Company. There is a monthly USD deposit balance examination by BPM, LLP to verify the 1:1 peg.
The Gemini Dollar is an ERC-20 token built on the Ethereum Network. The smart contracts were audited by Trail of Bits, Inc, a security research and development firm.
How is GUSD used:
- It can be used globally to access the stability of USD via blockchain rails. As a result, it can act as a safe haven against more volatile currencies.
- It can be used for trading. Traders can use GUSD to execute trading strategies that require USD without trading out of crypto. This also means no taxable event gets created, since the crypto was never converted back into fiat currency.
- It can be used as a way to earn interest. By creating a BlockFi Interest Account (BIA), you can earn interest on GUSD.
How to convert USD into GUSD and earn interest:
The easiest way to obtain GUSD is directly through Gemini. Here’s how:
- Signup and deposit USD into Gemini via an ACH or Wire transfer.
- Withdraw GUSD from Gemini to your BlockFi GUSD address (grab GUSD deposit address from your BlockFi dashboard) by converting USD to GUSD.
- Earn 8.6% APY on your GUSD balance paid out on the first business day of each month.
If you have any questions, our support team is always happy to help. Call us at +1 (646) 779-9688 or email us at firstname.lastname@example.org.
– The BockFi Team