Gate Rivals USDT with GUSD: Stability Meets Yield in New Stablecoin Era

Gate has launched Gemini Dollar (GUSD), a new wealth management certificate designed to offer users stable returns through real-world asset (RWA) backing, such as U.S. Treasury bonds. This product is part of the cryptocurrency exchange’s broader strategy to bridge traditional finance (TradFi) with decentralized finance (DeFi). Launched on August 29, GUSD is fully integrated with Gate’s trading and wealth management features, enabling users to exchange it for USDT in the spot market or mint it at a 1:1 ratio through the platform’s “On-Chain Coin Earning” program. Initial data indicates that GUSD’s trading pairs have already seen significant traction, with the BTC/GUSD pair generating $1.397 million in trading volume within 24 hours of its launch [1].

The product also supports staking options, with the first GUSD staking pool offering users a share of 6,428,572 CELB tokens. An estimated annualized yield of up to 365% was announced for early participants. In addition to staking, Gate has introduced other features such as CandyDrop, indicating a broader rollout of utility for the token. These features are part of Gate’s efforts to increase GUSD’s liquidity and market appeal, positioning it as a flexible and user-friendly digital asset for both retail and institutional investors [1].

Further enhancing the product’s flexibility, Gate announced on August 18, 2025, that users can stake USDT or USDC to redeem GUSD tokens at a 1:1 ratio, with an initial annualized yield of 4.40%. This yield is backed by revenue from the Gate ecosystem and real-world assets. The product also differentiates staking limits for individual and institutional users, offering a tailored approach to accommodate diverse risk appetites while maintaining low-risk, stable returns for all participants [2]. Such strategies are designed to make GUSD attractive to users seeking exposure to U.S. dollar-backed assets without the volatility typically associated with crypto assets.

GUSD’s market performance reflects a growing trend in the stablecoin sector, where demand for low-risk, stable digital assets is rising. As of early 2025, the stablecoin market has reached a market capitalization of $227 billion, with over 80% of trading volume on major exchanges involving stablecoins. USDT and USDC remain the leading stablecoins, with USDT alone holding a $143 billion market cap. The increased adoption of stablecoins is driven by their use in cross-border transactions, crypto trading, and as a hedge against volatile local currencies in emerging markets [3]. Gate’s GUSD is now part of this expanding ecosystem, competing with these dominant stablecoins while offering unique features such as RWAs and yield-generating opportunities.

The regulatory environment for stablecoins is also evolving, with major jurisdictions such as the U.S., EU, and Asia introducing frameworks to ensure transparency and stability. For instance, the U.S. passed the 2025 GENIUS Act to regulate dollar-backed stablecoins, requiring federal approval and regular reserve audits. In this context, GUSD’s backing by regulated assets such as U.S. Treasury bonds aligns with the growing regulatory expectations, providing users with an additional layer of confidence. As stablecoins become integral to global payment systems, Gate’s GUSD positions itself as a compliant and secure option for both DeFi and TradFi participants [3].

With the broader market shift toward tokenized assets and the increasing acceptance of stablecoins in mainstream finance, Gate’s GUSD is well-positioned to capture a growing segment of the digital wealth management market. The platform’s focus on RWAs, transparent operations, and yield-generating mechanisms addresses the key concerns of investors seeking low-risk, stable returns in a volatile crypto environment. As Gate continues to expand its partnerships and integrate GUSD into its ecosystem, the token is expected to gain traction among users looking for a secure and diversified digital investment option [3].

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[1] title1 (https://www.panewslab.com/en/articles/778da085-856d-40c7-a443-92c453bb7c45)

[2] title2 (https://www.odaily.news/en/newsflash/443971)

[3] title3 (https://www.hostmerchantservices.com/2025/08/cross-border-payment/)