S&P Global Ratings assesses the ability of Gemini USD (GUSD) to maintain its peg to the U.S. dollar at 2 (strong). Our asset assessment is 1 (very strong), given that GUSD is backed by what we consider as very low risk assets. GUSD reserves are held and maintained as either: cash deposits at a variety of highly rated U.S. banking institutions; U.S. treasury bills with maturities of three months or less; or money market funds. Since its inception in July 2018, GUSD has operated under the guidance of the New York State Department of Financial Services (NYDFS) as an issuer of U.S. dollar-backed stablecoins. Our stablecoin stability assessment of 2 is one level below the asset assessment. This reflects the scarcity of liquidity on the secondary market and the current market capitalization of GUSD, which is relatively modest compared with the overall stablecoin market.