GUSD Explained: A Stable RWA Investment Choice by Gate

8/22/2025, 4:22:47 AM
Beginner
XRP
GUSD's main advantages are its stable returns and reliable asset-backed structure, delivering low volatility and predictable returns. Users can avoid the dramatic yield swings often seen with Yu'ebao and DeFi staking products.

GUSD: The Innovative Bridge Between Traditional Finance and the Crypto World

In the crypto market, investors consistently seek a balance between high volatility and stable returns. Gate’s new GUSD is more than just another stablecoin—it serves as a wealth management certificate backed by real-world assets (RWAs) like U.S. Treasury bonds. When users convert USDT or USDC to GUSD, their funds aren’t exposed to the turbulent crypto market, but instead are indirectly invested into a diversified portfolio of low-risk traditional assets. By leveraging blockchain technology, Gate brings the reliability of traditional finance into the digital asset ecosystem, offering investors a more dependable way to manage their wealth.

GUSD’s Core Advantages

GUSD stands out among wealth management products due to its stable yields and reliable asset backing. GUSD delivers low volatility and predictable returns, sidestepping the sharp yield swings often seen in flexible savings or DeFi staking platforms. Additionally, GUSD supports 1:1 minting with both USDT and USDC, and can be redeemed for USDC. Since USDC is known for its compliance and transparency, redeeming GUSD is practically equivalent to retrieving U.S. dollars, which further increases investor trust.

How GUSD Works

Gate’s GUSD operates through a straightforward three-step process:

1. Minting (Subscription)

  • On the Gate platform, navigate to the “On-chain Earn” page and exchange USDT or USDC for GUSD at a 1:1 rate.
  • Each user can mint up to $5 million worth of GUSD (in USDT/USDC equivalent).

2. Earning Returns

  • Simply holding GUSD allows you to earn returns. The current annual yield is 4.40%.
  • Returns are generated from U.S. Treasury interest and Gate ecosystem revenue. Earnings are automatically distributed to your spot account, supporting compounding growth.

3. Redemption

  • You can redeem GUSD for USDC at a 1:1 ratio.
  • Fast redemption is available (0.1% fee, credited in about 10 minutes) as well as standard redemption (0.05% fee, credited within T+3 days).

Why Choose Gate’s GUSD?

When it comes to wealth management, yield matters, but the platform’s credibility is even more critical. Gate manages over $4 billion in wealth management assets and has built a strong reputation and loyal user base in the crypto industry. Gate is committed to providing proof of reserves and custody bank certificates directly on the product page, ensuring that every GUSD issued is fully backed by real-world assets. This guarantees transparency, security, and verifiability. Compared to RWA products from exchanges like Binance, Gate offers:

  • Support for minting with both USDT and USDC stablecoins.
  • USDC redemption, closely aligning with traditional U.S. dollar assets.

Want to explore more about Web3? Click here to register: https://www.gate.com/

Summary

Gate’s GUSD offers investors a stable wealth management solution backed by real-world assets. Compared to the volatile returns often seen in crypto, GUSD’s stability, transparency, and low risk make it the top choice for anyone seeking capital preservation and reliable cash flow. More than just a financial product, GUSD serves as a key bridge connecting DeFi and traditional finance.

Author: Allen
* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.
* This article may not be reproduced, transmitted or copied without referencing Gate. Contravention is an infringement of Copyright Act and may be subject to legal action.

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