MELD, a startup operating in the Cardano ecosystem, intends to partner with Nigerian mobile operator Tingo Holdings and tokenization provider Ubuntu Tribe to create a gold-backed stablecoin.
The precious metal used to back the asset will be mined in an artisanal and environmentally friendly manner in Africa and South America. Ken Olling, chief of MELD, said:
"Gold will be stored in a vault, tokenized and then fractionalized and divided so we can sell it."
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Tingo Holdings' customers will have access to the startup's crypto banking services. Mamadou Kwidjim Toure, spokesperson for Ubuntu Tribe, said:
"It’s a game changer in how people will be accessing wealth and creating wealth."
The stablecoin can be used on the MELD platform as collateral against a cash loan. The collateral will be used in liquidity pools. The fees are returned to the borrower, in addition to the initial deposit, once the loan has been repaid.