GUSD: Transforming Time-Linked Note Mechanics into an On-Chain Dollar Instrument

9/22/2025, 1:48:57 AM
Beginner
Quick Reads
GUSD is an innovative stablecoin that distinguishes itself from conventional stablecoins by incorporating bond-like features, which return principal and interest at maturity. GUSD is backed by real-world assets (RWA), including U.S. Treasury securities.

GUSD’s Unique Positioning Beyond Stablecoins

While most stablecoins emphasize price stability and payment convenience, GUSD takes a distinct approach, bringing the features of principal-and-interest-bearing notes on-chain. Backed by real-world assets (RWAs) such as U.S. Treasuries, GUSD enables holders to redeem both principal and accumulated returns, providing an on-chain experience similar to traditional fixed-income products.

How Can You Get GUSD?

Gate provides two direct options to suit user preferences:

  • Spot market swap: Instantly exchange USDT for GUSD in the spot market for immediate access;
  • On-chain 1:1 minting: Mint GUSD at a 1:1 ratio using USDT or USDC, facilitating portfolio integration and simplifying wealth management allocation.

Once acquired through swapping or minting, GUSD is available for trading, margin usage, or investment in wealth management products.

Lump-Sum Returns Instead of Daily Interest

GUSD generates returns from its RWA reserves (such as U.S. Treasuries), but its distribution model differs from the typical daily interest payout. Instead, Gate calculates and pays out earnings in full at redemption or maturity. For example, if you mint GUSD with 100 USDT and the underlying assets earn a 20% return, you may redeem approximately 120 USDC—subject to taxes or fees per official guidelines. Gate also offers flexible savings options, allowing short-term capital to participate in continuous returns at any time.

Staking and Ecosystem Incentives

To drive user participation, Gate has integrated staking and ecosystem rewards into GUSD:

  • Stake to receive base interest;
  • Earn additional token rewards in special promotions. Annualized yields, when available, will be announced officially.
  • GUSD plans to expand interoperability with lending, Launchpool, CandyDrop, and other ecosystem utilities—creating a synergistic environment for yield generation and community incentives.

This approach empowers users to benefit simultaneously from returns comparable to fixed-income products and platform incentives.

How GUSD Differs from Traditional Stablecoins and RWA Products

GUSD stands out through its design and integrated application ecosystem:

  • Accrue time-based value: Holding GUSD generates actual returns instead of simply maintaining face value;
  • Support dual-currency minting: Both USDT and USDC are accepted, maximizing user flexibility;
  • Offer unified use cases: Trading, margin, yield products, and staking are interlinked within a single ecosystem;
  • Transparency commitment: Gate plans to gradually disclose proof of reserves and custody details to achieve full asset backing and external validation.

GUSD thus serves as a USD-based instrument with both liquidity and yield potential, and is designed for active portfolio allocation, rather than merely functioning as a payment vehicle.

Liquidity and Redemption Process

Users can redeem GUSD for USDC and then swap it to USDT or other assets as needed, thanks to GUSD’s high liquidity. This flexible process avoids permanent lockups, enabling swift asset reallocation across markets.

Risk Notice

This document does not constitute an offer, solicitation, or investment advice. Please carefully assess all risks and seek professional guidance before investing. Gate may restrict or prohibit services in certain jurisdictions; see the user agreement for details.

User Agreement: https://www.gate.com/legal/user-agreement

Conclusion

GUSD combines the financial mechanics of traditional notes—return of principal plus interest at maturity—with the programmable and high-liquidity features of blockchain. From minting and holding, to staking, redemption, and ecosystem integration, it offers a robust on-chain solution for managing dollars in modern investment portfolios. With ongoing improvements to transparency, compliance, and custody validation, GUSD is well-positioned to set a benchmark for RWA deployment in Web3.

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.

Share

Crypto Calendar
Sibos 2025 in Geneva
Quant will participate in Sibos 2025 in Geneva on September 29th — October 2nd in Geneva. During the conference, the company’s representatives intend to discuss the application of its programmable settlement infrastructure for European banks and payment institutions transitioning from legacy payment rails.
QNT
-4.39%
2025-10-01
TOKEN2049 in Singapore
Akash Network will participate at TOKEN2049, a technology and cryptocurrency conference to be held in Singapore from October 1 to 2. The company intends to present its vision of decentralized artificial intelligence and discuss the scaling of decentralized physical infrastructure networks (DePIN) using the AKT token.
AKT
-0.42%
2025-10-01
Token2049 in Singapore
COTI will participate in Token2049 in Singapore on October 1st-2nd.
COTI
-5.31%
2025-10-01
Arweave Day Asia 2025 in Singapore
ao Computer reports that Arweave Day Asia 2025 is set to be held in Singapore on October 2nd. The conference will focus on developments within the Permaweb ecosystem, featuring sessions aimed at technical discussions and creative engagement.
AO
-4.96%
2025-10-01
South Summit Korea 2025 in Seoul
CHEQD Network has been selected as a finalist for the Startup Competition at South Summit Korea 2025, taking place on October 1–2. This year’s summit focuses on DeepTech and AI. cheqd will present its trust infrastructure and the Verifiable AI use case on stage and at the exhibition area.
CHEQ
6.56%
2025-10-01

Related Articles

Pi Coin Transaction Guide: How to Transfer to Gate.io
Beginner

Pi Coin Transaction Guide: How to Transfer to Gate.io

Pi Network is a decentralized cryptocurrency network for the general public, using the Stellar Consensus Protocol (SCP) consensus mechanism, which allows users to easily mine Pi tokens from their mobile devices and use them for payments and transactions. With the official opening of the mainnet on February 20, 2025, investors can deposit and trade $PI on exchanges such as Gate.io. This article details how to securely transfer Pi Coins to Gate.io, including obtaining a deposit address, completing the transfer using the Pi Network mainnet wallet, and the exchange's arrival confirmation process. In addition, we have analysed $PI investment risks, including market volatility, compliance and potential fraud risks, to remind investors to take risk management before trading.
2/25/2025, 8:21:43 AM
What is N2: An AI-Driven Layer 2 Solution
Beginner

What is N2: An AI-Driven Layer 2 Solution

This article introduces N2 (Niggachain AI Layer 2), the world's first AI-driven Layer 2 blockchain solution. N2 combines AI technology and quantum computing resistance to address the limitations of traditional blockchains in scalability, transaction speed, and cost. Its core technologies include '0-second block time', AI-driven network optimization, and quantum-resistant security protection, aiming to improve transaction efficiency and ensure system stability.
12/23/2024, 7:21:00 AM
Flare Crypto Explained: What Is Flare Network and Why It Matters in 2025
Beginner

Flare Crypto Explained: What Is Flare Network and Why It Matters in 2025

Discover what Flare Crypto is, how it works, its use cases, tokenomics, and why it's gaining traction in the blockchain space in 2025.
4/15/2025, 1:21:45 AM
How to Sell Pi Coin: A Beginner's Guide
Beginner

How to Sell Pi Coin: A Beginner's Guide

This article provides detailed information about Pi Coin, how to complete KYC verification, and choose the right exchange to sell Pi Coin. We also provide specific steps for selling Pi Coin and remind of important matters to pay attention to when selling, helping novice users complete Pi Coin transactions smoothly.
2/26/2025, 9:20:50 AM
Grok AI, GrokCoin & Grok: the Hype and Reality
Beginner

Grok AI, GrokCoin & Grok: the Hype and Reality

Discover Grok AI, GrokCoin, and Grok Crypto—from Elon Musk's AI chatbot to the viral meme coin inspired by it. Learn about GrokCoin’s rise, its connection to Grok AI, and the risks of investing in meme coins.
3/7/2025, 10:33:07 AM
Understand Baby doge coin in one article
Beginner

Understand Baby doge coin in one article

Baby Doge Coin, also known as "Baby Dog Token", is a meme token derived from the Dogecoin community, which gained popularity through Elon Musk's tweets and enhanced token utility through mechanisms such as deflation, payment integration, and NFT ecosystem. This article comprehensively analyzes the project background, token information, application scenarios, and market performance of Baby Doge, helping investors quickly understand its potential and risks.
2/14/2025, 4:53:03 PM
Start Now
Sign up and get a
$100
Voucher!