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What is Solvency?

Crypto Terms Glossary: What is Solvency?

Solvency is the ability of an organization to meet its financial obligations from a regulatory and compliance standpoint. For GUSD, this means that the amount of USD maintained in a holding account is equivalent to or greater than the tokens in circulation. This solvency measure affirms that the Gemini Dollar tokens maintain their value for both the short term and the long term.

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