GUSD Price

GUSD is a US-dollar-backed stablecoin launched in 2018 by Gemini, the exchange founded by the Winklevoss twins. It is issued under the oversight of the New York State Department of Financial Services (NYDFS), making it one of the first regulated stablecoins. Each GUSD is designed to be redeemable for one US dollar, and it trades near $0.999. Built as an ERC-20 token on Ethereum, GUSD provides a compliant, transparent way to hold and transfer dollars on-chain.

GUSD maintains its peg through full fiat backing: for every token in circulation, Gemini holds one US dollar in reserves at US banks and money-market funds. Tokens are minted when users deposit dollars with Gemini and burned when they redeem, keeping supply matched to reserves. Reserves are subject to regulatory oversight and periodic attestation, supporting confidence in the peg. Unlike crypto-collateralized or algorithmic stablecoins, GUSD relies on conventional dollar reserves and issuer redemption to hold parity.

GUSD is engineered to stay at $1, so its price is governed by reserve backing and redeemability rather than speculation. Direct minting and redemption at par let arbitrageurs correct small deviations, keeping it near parity. Confidence in Gemini's solvency, the quality of reserves, and regulatory standing are the main factors affecting the peg. Demand comes from traders, remittances and DeFi users seeking a compliant dollar token, while its circulating supply expands or contracts with issuance and redemption.

Though regulated, GUSD carries issuer and counterparty risk: its peg depends on Gemini's solvency and the integrity of its reserves. Banking disruptions, regulatory changes or a loss of confidence could pressure the peg. GUSD also has smaller circulation and liquidity than leading stablecoins, and holders face smart-contract risk plus the general reliance on centralized redemption to convert tokens back to dollars.