MELD, a decentralized finance liquidity protocol, recently made it known that preparations are being made to initiate a stablecoin backed by gold on Cardano’s network. The news was disclosed during City A.M.’s cryptocurrency summit, in which MELD had officially announced a new 3-way partnership with the biggest mobile network in Nigeria, Tingo Holdings, and also an ethical cryptocurrency organization by the name of Ubuntu Tribe, which primarily focuses on tokenizing natural resources.
One of the benefits of these new partnerships includes MELD being able to allow its users to successfully stake, borrow, and lend their respective assets, which will also now involve the aforementioned gold-backed stablecoin.
Stablecoins on Cardano
MELD’s co-founder and chairman, Ken Olling, stated that the primary objective here is a rather straightforward one, namely to provide increased clarity and simplicity. Essentially, Ken desires to make the act of trading highly accessible via this new development so that anyone who has a smartphone with a stable Internet connection can actively get involved.
To that end, the gold shall be stored safely inside a vault. It will then be tokenized and subsequently fractionalized before being divided in order to sell it, the chairman explained. He also added that the whole idea is quite simple. However, it is nonetheless very powerful in the sense that it is dependable and that everyone can indeed count on it, giving reference to the stable value of gold and its historical data.
Also read:Moreover, at this year’s Cardano Summit, Charles Hoskinson himself had talked about COTI, the payment gateway platform that shall be the new official issuer of a stablecoin known as Djed, which has been said to be an algorithmic token meant to be utilized for the purposes of price stability. The desire to have such a stablecoin on Cardano’s network is one that has been expressed by the project’s community for some time now, as Cardano enthusiasts have long-anticipated this development.
Adoption to be enhanced
David Taylor, the Cardano Foundation’s head of marketing, stated that through the new partnership, millions of active subscribers to the biggest mobile network in Nigeria will now be able to access cryptocurrency services thanks to MELD. This will, in turn, bolster the overall adoption of both Cardano and cryptocurrencies as a whole within the nation.
Furthermore, the number of individuals who are holding ADA had also surged to a new ATH (all-time high) lately, which would certainly have been due in part to the recent developments.
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