Gemini Dollar
Summary
On September 10, 2018, Gemini announced that it would released an ERC20 token pegged to the US Dollar called GUSD. Gemini users are able to convert US Dollars in their Gemini accounts into GUSD. However, the U.S dollars that correspond to the Gemini dollars issued and in circulation will be held at a bank located in the United States and eligible for FDIC “pass-through” deposit insurance, subject to applicable limitations.
Risk of Frozen or Blacklisted Accounts
To comply with regulations, GUSD uses an ERC20Proxy contract that gives Gemini, as the custodian, the ability to upgrade the contract once every 48 hours. Gemini included a mechanism in GUSD which would allow them to freeze user's funds.
Auditing Process
U.S. dollars that correspond to the Gemini dollars issued and in circulation are held at State Street Bank and Trust Company. The U.S. dollar deposit balance of Gemini's account is examined monthly by BPM, LLP, a registered public accounting firm, in order to verify the 1:1 peg. All Independent Accountants' Reports are published and available here: https://gemini.com/dollar/#reports