GUSD: The new focal point in the stablecoin market, a bridge connecting TradFi and on-chain assets.

On October 7, 2025, as competition in the global stablecoin market becomes increasingly fierce, GUSD (Gate USD) is gradually becoming an important foundational asset in the Web3 world thanks to its compliance framework, high transparency, and rich ecological applications. Launched by the globally renowned encryption platform Gate, GUSD aims to provide users with a secure, trustworthy, and low-fluctuation on-chain settlement tool, playing a key role in the Layer 2 ecosystem.

1. What is GUSD?

GUSD (Gate USD) is a USD-pegged stablecoin issued by the Gate ecosystem, with each GUSD backed by a value of 1 USD. Its issuance mechanism is based on a full reserve model, where all GUSD is supported by equivalent fiat currency or highly liquid assets (such as government bonds, cash, etc.), ensuring the transparency and security of the 1:1 exchange.

Unlike traditional stablecoins, GUSD is not just a payment or settlement tool, but also the core circulating asset of Gate's entire on-chain financial ecosystem, widely used in various scenarios such as trading, wealth management, lending, and staking mining.

2. Stability, Security, Transparency: The Three Core Features of GUSD

1. Full reserve and regular audits

Each GUSD is backed by a corresponding reserve of USD, held in accounts at regulated financial institutions. Gate will regularly obtain reserve audit reports from independent third-party accounting firms, publicly disclose the financial status, and ensure a solid foundation of user trust.

2. High Compliance and Global Layout

GUSD complies with international Anti-Money Laundering (AML) and Know Your Customer (KYC) standards, and has completed compliance filings in multiple jurisdictions. This provides a solid guarantee for its circulation globally, allowing institutional investors to safely participate in the Gate ecosystem.

3. On-chain transparency and verifiability

All issuance and destruction records of GUSD are traceable on-chain. Users can verify the total issuance and reserve ratio through the block explorer, achieving a decentralized and transparent trust mechanism.

3. The Role of GUSD in the Gate Ecosystem

GUSD is the financial hub of the Gate ecosystem. As the most important stablecoin asset in the ecosystem, it plays a key role in the following core modules:

• Trading medium: GUSD is widely used as the margin and settlement currency for spot and perpetual contracts on the Gate main platform and Gate Perp DEX.
• Financial tools: Users can deposit GUSD in Gate Earn or Gate Wealth products to enjoy stable returns and flexible redemptions.
• Layer 2 ecological cornerstone: On the Gate Layer, GUSD is the preferred stable asset for DeFi protocols, used in various scenarios such as liquidity pools, lending protocols, Launchpool, etc.
• Cross-chain payment and settlement: Through Gate Bridge, users can freely circulate GUSD across multiple chains such as Ethereum, Arbitrum, and BNB Chain, achieving cross-ecosystem payment and asset management.

This "multi-layer collaboration" design allows GUSD not only to possess financial attributes but also to serve as a bridge connecting various products and services of Gate.

4. Differences from Traditional Stablecoins

In the stablecoin market, USDT, USDC, and GUSD form a complementary competitive landscape.

Compared to mainstream stablecoins, the advantages of GUSD are mainly reflected in:

• Strong ecological integration: Relying on the complete ecosystem of the Gate platform and Gate Layer, GUSD has natural application scenarios and liquidity.
• Yield can be expanded: Holding GUSD can not only serve as a store of value but also participate in Gate Earn, Alpha Program, and Launchpool to create compound returns.
• User experience optimization: Using GUSD on the Gate Layer, the transaction fee is only 1/100 of the Ethereum mainnet, and the settlement speed is improved to the second level.

This makes GUSD not just a stablecoin, but also a "liquid key" for users to enter the Web3 world.

5. The Future Development of GUSD

Gate officially stated that in the future, GUSD will continue to promote innovation and application scenario expansion of stablecoins, with key directions including:

1. On-chain Tokenised Assets (Tokenised Bill): GUSD will be linked to on-chain government bonds and bill products, forming a yield-enhanced stablecoin.
2. Payment system construction: Gate is working with multiple payment institutions to promote the application of GUSD in cross-border e-commerce and Web3 game payments.
3. Institutional Cooperation: In the future, we will collaborate with more banks and asset custodians to further enhance compliance and transparency.

These measures will make GUSD a true central asset connecting traditional finance with the decentralized world.

VI. Conclusion: GUSD, the Builder of a New Order for Stablecoins

In today's global cryptocurrency landscape moving towards Compliance and institutionalization, the emergence of GUSD is not only an innovation in stablecoins but also a symbol of the maturity of the digital financial system.