MELD, a decentralized finance (DeFi) platform, will collaborate with Tingo Network, Nigeria’s largest mobile network, to establish a new gold-backed stablecoin on the Cardano network.
According to City A.M., chairman Ken Olling revealed the cooperation at the company’s crypto event, which will also include Ubuntu Tribe, an ethical cryptocurrency that tokenizes natural resources.
Olling, chairman and co-founder of MELD, stated the company’s objective is “simplicity and clarity.” He wants to make trading accessible to anyone with a smartphone.
He clarified, “Gold will be housed in a vault, tokenized, fractionalized, and divided so we can sell it.”
Unique adoption boost
Cardano’s services, including lending and staking, will be available to nearly 8 million active members under the terms of the agreement, giving it a huge adoption boost in one of the largest crypto markets.
MELD allows users to lend and borrow crypto-assets and fiat currency, as well as stake MELD tokens. It’s based on the Cardano blockchain, which only recently added smart contracts to its platform.
Stablecoins backed by gold aren’t exactly a novel concept. On top of other blockchains, there are a number of gold-backed stablecoins in circulation.
Tether, a renowned stablecoin issuer, released a token backed by an ounce of gold in January. Its worth is guaranteed by gold bars kept in a Swiss vault.
Prior to that, Paxos received regulatory permission in the United States to launch a similar product.
Tether Gold (XAU) was the top gold-backed crypto by market value in March of last year, but it has since been surpassed by Paxos Gold (PAXG).
Game changer
Input Output Chief Executive Officer Charles Hoskinson announced an algorithmic stablecoin named DJED, which will be issued by blockchain company COTI, at the Cardano Summit 2021.
Hoskinson said the DJED stablecoin might be a game-changer in the crypto sector, appealing to a whole new audience at a time when the crypto industry is already booming.
Image courtesy of Cointelegraph News/YouTube
Source: https://bitcoinerx.com/bitcoin/cardano-to-launch-gold-backed-stablecoin/
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