Gate GUSD: Redefining the Value Logic of Stablecoins and Creating a New Revenue Anchor for the Crypto Market

Under the backdrop of the stablecoin competition entering the second half, Gate launched GUSD in August 2025—a financial certificate backed by U.S. Treasuries.

Unlike most yield-bearing products that depend on token price fluctuations, GUSD is collateralized by low-risk assets like U.S. Treasuries, aiming to provide investors with long-term, predictable stable returns.

Official data shows that GUSD’s on-chain supply has surpassed $320 million, indicating strong market demand for this type of “value-added stablecoin.”

01 How GUSD Works and Its Core Features

GUSD is an innovative stablecoin launched by Gate Exchange. It is pegged 1:1 to the US dollar but differs from traditional stablecoins.

Users can directly exchange USDT or USDC for GUSD on the Gate platform at a 1:1 ratio.

From the moment of minting, GUSD holders enjoy an annualized yield of 4.4%. This yield comes from two sources: interest from underlying U.S. Treasuries and a portion of Gate’s ecosystem revenue.

GUSD offers flexible redemption options. Users can choose standard redemption (0.05% fee, funds arrive within 3 days D+3) or fast redemption (0.1% fee, funds arrive within 10 minutes) to swap GUSD back to USDC.

Gate commits to transparency by publicly providing reserve proofs on the product page, issued by custodial banks or partner institutions, ensuring every circulating GUSD is fully backed by assets.

02 Market Performance and Adoption

Since its launch, GUSD has quickly gained significant market attention. According to CoinGecko, since August 29—the official launch date—minting volume has exceeded $120 million.

This growth aligns with Gate’s overall platform development. In August 2025, Gate achieved its strongest monthly performance ever, with derivatives trading volume soaring 98.9% to $746 billion, and derivatives market share rising to 10.1%, solidifying its position as the fourth-largest derivatives exchange globally.

GUSD has been deeply integrated into Gate’s ecosystem. Beyond spot trading (supporting pairs like GUSD/USDT, BTC/GUSD, ETH/GUSD), GUSD is also used for participation in Launchpool liquidity mining.

In Gate Launchpad’s fourth project, Plasma (XPL), GUSD was the sole subscription asset. Users could participate in new token offerings while continuing to earn GUSD’s inherent yield, achieving a “dual benefit” experience.

03 Significance for the Cryptocurrency Industry

The emergence of GUSD signifies a rewriting of stablecoin value logic. Historically, the stablecoin market has been dominated by USDT and USDC—USDT leveraging scale advantages, and USDC winning through compliance.

GUSD introduces a “yield stacking” model, shifting the competitive focus from size and compliance to application and returns.

This model provides a new “yield anchor” for the crypto market. In a high-interest traditional financial environment, GUSD allows crypto users to earn stable returns comparable to U.S. Treasuries without leaving the blockchain space.

This could attract more traditional capital into crypto markets.

GUSD also exemplifies the trend of tokenizing real-world assets (RWA). It successfully brings traditional assets like U.S. Treasuries onto the blockchain via crypto certificates, offering a framework for future on-chain assets such as corporate bonds and real estate.

For Gate, GUSD enhances its ecosystem’s closed loop. As users engage in trading, yield farming, and mining with GUSD, capital tends to accumulate within the platform, increasing stickiness and vitality.

04 Future Outlook and Potential Challenges

As the crypto market evolves, GUSD’s “dual yield” model could set a new industry standard. Gate plans to gradually open up more features like futures trading and leveraged lending to expand GUSD’s use cases.

However, GUSD faces challenges, primarily regulatory uncertainty. The yield narrative might spark discussions about whether GUSD qualifies as a security, necessitating clear compliance frameworks.

The long-term sustainability of the yield model also warrants attention. The 4.4% annualized return is linked to fluctuations in the U.S. Treasury market. Balancing yield and risk within a global regulatory environment is a core issue GUSD must address.

Additionally, with more competitors launching similar products, GUSD needs to maintain its unique advantages. In the future, the stablecoin market may become “multi-polar”: USDT maintaining liquidity dominance, USDC consolidating its position in compliance and institutional markets, and emerging stablecoins like GUSD finding niche breakthroughs.

Future Outlook

In the coming quarters, the stablecoin market is likely to become more “multi-polar”: USDT continuing to lead with global liquidity, USDC holding its compliance and institutional edge, and new entrants like GUSD exploring niche segments such as yield stacking.

GUSD’s success has gone beyond the product itself; it represents the deep integration of crypto with traditional finance. As more assets are tokenized and regulatory clarity improves, products that combine stable value with yield generation—like GUSD—may become foundational infrastructure for the next phase of market growth.