About

Gemini Dollar (GUSD) is a stablecoin pegged to the U.S. dollar, blending traditional currency stability with blockchain technology. It is the native stablecoin of the Gemini cryptocurrency echchange.

History

Founded in 2018, the Gemini Dollar (GUSD) a fiat-collateralized cryptocurrency stabilized by collateralization by USD in accounts held by the company at the U.S. depository institutions. GUSD was created by Gemini Trust Company, LLC (Gemini), a New York trust company. Gemini operates under the direct supervision and regulatory authority of the New York State Department of Financial Services and is subject to the New York Banking Law and other applicable U.S. laws and regulations. Gemini maintains the necessary licenses and registrations to lawfully issue Gemini dollars.

The specifications of the Gemini dollar require a network that allows for the development of decentralized applications (including smart contracts) that may be used to store and transfer value according to certain conditions set by the developer. The Gemini dollar can be transferred on the Ethereum network and stored in any Ethereum address.

Gemini has the ability to upgrade the Gemini dollar token in order to resolve vulnerabilities, extend the system with new features, and improve the system and optimize its operational efficiency. Furthermore, in order to comply with regulations, Gemini can pause, block, or reverse token transfers in response to a security incident or if legally obligated or compelled to do so by a court of law or other governmental bodies.

To ensure that trustworthiness and stability are maintained, an offline approval mechanism is used where each smart contract in the Gemini dollar system is required to look to a custodian for approval. To upgrade the contract, the current instance of ‘Impl’ is replaced by instructing ‘Proxy’ (via ‘Custodian’) to delegate active token implementation to a new instance of ‘Impl,’ and instructing ‘Store’ (via ‘Custodian’) to treat this new instance of ‘Impl’ as its single trusted source when accepting updates to the Gemini dollar ledger.