MELD to Launch gold-backed stable coin on Cardano
MELD, a decentralized financial infrastructure protocol, is ready to launch a gold-backed stable coin on the Cardano network.
MELD, the decentralized finance (Defi) liquidity protocol, announced a three-way agreement with Tingo Holdings, Nigeria’s largest mobile network, and Ubuntu Tribe, an ethical crypto firm that tokenizes natural resources, at a crypto summit hosted by British financial newspaper City A.M.
As part of the new agreement, the Defi protocol, which is built on Cardano and enables users to lend, borrow, and stake their assets, announced intentions to establish a gold-backed stable coin.
Stablecoins created by Cardano
“Our objective here is simplicity and clarity,” said Ken Olling, chairman and co-founder of MELD, whose mission is to make trading accessible to anybody with a smartphone. “Gold will be housed in a vault, tokenized, fractionalized, and divided in order for it to be sold,” he clarified.
“It’s a simple concept, but extremely strong because you can rely on it,” Olling remarked, referring to gold’s consistent value. As announced recently at the Cardano Summit 2021 by none other than Cardano’s founder, Charles Hoskinson, the ADA payment gateway platform COTI will become the network’s official issuer of the network’s long-awaited stable coin Djed, which is described as an algorithmic token with proven price stability.
According to the Cardano developer team, IOHK, Djed’s properties, which include upper and lower bound maintenance, robust design in the event of market collapses, no bankruptcy, and no conceivable reserve drain, are mathematically verifiable.
According to David Taylor, Cardano Foundation’s head of marketing, who announced the agreement on Twitter, the new relationship with Nigeria’s largest mobile network will offer MELD’s crypto services to millions of active subscribers, hence increasing Cardano’s adoption in the country.
As a result of recent ecosystem changes, the number of ADA holders just reached a new all-time high (ATH). Cardano’s native token has 243,000 investors, with 70% of wallet addresses holding the cryptocurrency profiting, according to data from IntoTheBlock.