Gold-backed stablecoin set to launch on Cardano
Decentralized finance liquidity protocol Meld has announced its plan to issue a stablecoin backed by physical gold on the Cardano blockchain during a cryptocurrency-focused summit held by British financial newspaper City AM.
Co-founder Ken Olling says anyone with a smartphone will be able to trade the Shiny Metal due to tokenization and fractionation:
Gold will be stored in a vault, tokenized and then fractionalised and divided so we can sell it.
Meld has entered into a partnership with Nigeria-based telecommunications service provider Tingo Mobile. The deal stipulates that its services, such as lending and staking, will be available to roughly eight million active subscribers, which will give Cardano a significant adoption push in one of the biggest crypto markets.
Gold backed stablecoins aren’t exactly a new concept.
Last January, leading stablecoin issuer Tether issued a token pegged to an ounce of gold. Its value is backed by gold bars stored in a Swiss safe.
Prior to that, rival Paxos obtained regulatory approval to launch a similar product in the U.S.
The Djed stablecoin
At Cardano Summit 2021, Input Output CEO Charles Hoskinson presented an algorithmic stablecoin called Djed which will be issued by the COTI blockchain startup.
Hoskinson touted the cryptocurrency as a “game-changer”:
The Djed stablecoin could be a game-changer in the crypto space, attracting a whole new audience at a time when the industry is already experiencing astronomical growth.
