Gate Transforms Stablecoins into Yield-Generating Investments

Gate, a prominent digital asset trading platform, has launched GUSD, a new investment certificate supported by real-world assets (RWA) such as U.S. Treasury bonds, offering a low-risk, stable return option for users [1]. This product bridges traditional finance (TradFi) and decentralized finance (DeFi) by bringing steady yields from conventional financial systems into the crypto space. GUSD is designed to provide users with a more secure and predictable investment alternative within their asset allocation strategies.

GUSD is fully integrated into Gate’s platform, allowing for immediate trading, deposits, withdrawals, and related investment features. Users can exchange USDT for GUSD in the spot market or mint GUSD at a 1:1 ratio using either USDT or USDC through Gate’s Staking page [1]. This flexibility caters to both traders seeking liquidity and investors looking for stable returns via RWA. GUSD also serves as a margin for Unified Account contracts and is supported by trading pairs and flexible savings options under the Simple Earn program.

A key feature of GUSD is its ability to generate returns from the interest earned on its underlying real-world assets. Unlike traditional stablecoins that function primarily as a medium of exchange, GUSD is an investment certificate with appreciation potential. Users receive both principal and accrued interest at the time of redemption, offering a steady growth mechanism over time [1]. For instance, a user who mints GUSD with 100 USDT may receive 120 USDC if the return reaches 20% upon redemption.

Gate has also introduced a staking pool for GUSD on its Launchpool, offering users the opportunity to earn CELB token rewards with an estimated annualized yield of 365% [1]. Additional features such as lending and CandyDrop are being rolled out. The platform aims to expand the utility of GUSD by collaborating with high-quality projects to launch more staking pools and provide liquidity incentives to attract broader market participation.

With over $4 billion in managed investment assets and a history of robust compliance and operations, Gate ensures the security and transparency of GUSD [1]. The product supports dual-currency minting with USDT and USDC, offering greater accessibility and flexibility for international users. As the product grows, Gate expects the total fund size of GUSD to surpass $100 million in the near term, establishing a stronger market foundation. The platform plans to gradually disclose reserve proofs and custodian collaboration details to reinforce trust and ensure full backing of each GUSD unit by real-world assets.

Gate's introduction of GUSD represents a step forward in addressing the long-standing challenge of achieving stable returns in the crypto market. By transforming stablecoins into a secure, transparent, and sustainable investment option, GUSD is positioned to become a preferred tool for users looking to allocate assets and achieve long-term growth [1].

Source: [1] Gate Launches GUSD: A Stable Investment Backed by Real-World Assets (https://www.theblock.co/press-releases/368748/gate-launches-gusd-a-stable-investment-backed-by-real-world-assets)