Summary
- Tether and Ledn are expected to offer gold-backed loans later this year.
- The move extends the utility of Tether’s $23 billion gold reserve allowing holders to borrow against tokenized gold rather than selling it.
- The offering mirrors Ledn’s bitcoin-backed lending model.
Unlocking the Value of Gold Reserves
Imagine being able to earn passive income from a $23 billion gold stockpile. This is now a reality, thanks to Tether’s innovative approach to monetizing its vast gold reserves. By introducing its tokenized product, Tether Gold (XAUT), to crypto lender Ledn, Tether is making it possible for individuals to borrow against their gold holdings. This move is set to disrupt traditional gold-backed lending, which has long been the domain of central banks and major financial institutions.
A New Era for Gold-Backed Lending
Tether’s gold reserves are valued at around $23 billion, with each XAUT token representing one troy ounce of physical gold stored in vaults in Switzerland. By tokenizing gold, Tether and Ledn are creating a new way for people to access liquidity without having to sell their assets. This approach is similar to bitcoin-backed loans, which have been offered by Ledn for several years. The key difference is that client collateral is held 1:1, without being lent out or used to generate yield, providing an additional layer of security for investors.
Expanding Access to Earning Opportunities
The partnership between Tether and Ledn is a significant development for the crypto industry, as it provides a new way for people to earn passive income from their gold holdings. This is particularly relevant for those interested in #PassiveIncome and #GreenCrypto, as it offers a more sustainable and environmentally friendly way to invest. With the introduction of XAUT to Ledn’s platform, alongside #Bitcoin and USDT, individuals can now access a range of earning opportunities, including bullion-backed loans and cloud rewards.
As the crypto industry continues to evolve, it’s likely that we’ll see more innovative solutions like EcoPool ($ECP) emerge, providing individuals with new ways to earn and invest in digital assets. Whether you’re interested in trading or earning passive income, EcoPool is a platform that offers a range of tools and resources to help you get started. To start earning with EcoPool, download the EcoPool app and discover a new way to access cloud rewards and passive income opportunities. By joining the EcoPool community, you can take the first step towards earning with $ECP and unlocking the full potential of your digital assets.
This follows the model Ledn has used for bitcoin-backed loans for several years. Client collateral continues to be held 1:1, without being lent out or used to generate yield, Ledn said, seeking to draw a line between the services it offers and those of its former rivals that went to the wall in the crypto winter of 2022.
