The Gemini Dollar (GUSD) is an ERC20 token, which exists on the Ethereum blockchain. The crypto exchange, Gemini, has received approval from the New York State Department of Financial Services to launch the GUSD token, which is backed by USD reserves held by State Street in an FDIC-insured U.S. bank account.
The Gemini exchange allows users to convert between USD and GUSD, however, users will also be able to withdraw the tokens to their Ethereum address. GUSD can be exchanged for other cryptocurrencies on other exchanges offering different trading pairs. Gemini Trust Company controls the creation or "minting" of all GUSD. Since it's backed by American Currency on a one-to-one exchange rate with the USD, the Gemini dollar can be redeemed at any point for 1 USD on Gemini.
According to the firm, the system will be regularly audited by third parties, and their findings will be released to the public. The token’s smart contract code has been audited by digital security firm Trail of Bits.