GUSD (Gemini dollar) is a stablecoin created by the Gemini Trust Company, LLC. It is an Ethereum-based ERC20 token that was launched in September 2018. The purpose of GUSD is to provide traders and investors with a stable digital asset that can be used for payments and trading with other cryptocurrencies, as well as for hedging against volatility in the crypto markets.
GUSD tokens are backed 1:1 by USD held at State Street Bank & Trust Company and audited monthly by BPM LLP, one of the top 25 accounting firms in the US. This means that each GUSD token always has value equivalent to one US Dollar, making it a secure option when holding or transferring funds between exchanges or parties.
To purchase GUSD tokens directly from Gemini Exchange on behalf of another user requires registration with Gemini Exchange Know Your Customer (KYC) requirements and approval from their compliance team. Users must also verify their bank account information before they can purchase any GUSD tokens via wire transfer. Withdrawals may only be made back to verified bank accounts belonging to users who have completed KYC requirements successfully at Gemnini Exchange’s discretion.
The listing fee for buying/selling GUSD pairs on most cryptocurrency exchanges varies according to platform rules; however, some platforms do not list it at all due to its close association with regulated banking services offered by State Street Bank & Trust Company which complicates regulatory compliance issues related to operations outside the United States jurisdiction .
The primary use case for GUSD is providing liquidity when trading cryptocurrencies such as Bitcoin or Ethereum; however many dapps built using smart contracts on blockchain networks like Ethereum accept payment in both fiat currencies and stablecoins like GUSD – allowing developers access to low cost transfers without having go through long drawn out processes associated with traditional banking systems .
