Gemini Dollar (GUSD) Giving 8% APY with No Fees - Is It Really Safe?

The Gemini dollar (GUSD) is a crypto stablecoin pegged to and backed by US dollars held in FDIC-insured bank accounts. The funds held in reserves are routinely audited by the accounting firm, BPM LLP. GUSD was created by crypto exchange Gemini, which was founded by Cameron and Tyler Winklevoss in 2014 (Suck it Zuck!). Gemini received approval from the New York Department of Financial Services (NYDFS) to launch its stablecoin in 2018. The company has claimed that GUSD is the first regulated stablecoin, though Paxos also launched a NYDFS regulated stablecoin the same day. The Gemini Trust Company LLC holds USD deposits that correspond to the number of tokens in circulation. The Gemini dollar is an ERC20 crypto token built atop the Ethereum network, and its smart contracts are audited by security company Trail of Bits Inc.

All that said, I’ve been thinking about moving a significant amount of my fiat savings into GUSD since it is just sitting there getting 0.03% or whatever APY. Meanwhile those dirty little investment banker-sluts use it to leverage the investment portfolios of their rich clients. My only hesitation in moving it out is this: “Is it really safe, like safe-safe?”

I’ve done a fair amount of research about finding a non-bank alternative to put my non-crypto liquid cash/fiat emergency fund savings and this seems to be a nice balance between the fiat and crypto worlds. It’s crypto, it is insured, regulated, and there are currently no fees so I can buy 10,000 GUSD for $10,000 and get an 8% APY. Obviously this rate won’t last forever, but while it exists I wouldn’t mind taking advantage of it.

And also is this the best alternative for savings with this kind of security and peace of mind.

Am I missing anything?