Celsius, a crypto-based lending and saving app, has launched support for gold on its platform. Specifically, Tether Gold (XAU₮) is used to fund the new gold capacity on the network.
According to a press release, users holding the new asset in their Celsius wallets will be able to earn 3% interest per annum on their Tether Gold.
Celsius was launched in 2018 with the state goal of “[acting] as a catalyst for financial disruption on a global scale,” and also offer interest accounts on a healthy variety of cryptoassets. In addition, users can procure cash (dollar) loans from the platform with several cryptoassets held in collateral.
Tether Gold launched in early 2020 and has quickly become the leading gold-backed crypto, after Bitfinex launched margin-trading of the asset on its platform.
Celsius’ new capability could make a sweet deal even sweeter, as gold (XAU) has generally been on a tear in recent months. CryptoGlobe reported yesterday that the renewed interest in gold is not dying down, as some analyst have grown concerned that the extensive monetary and, perhaps, fiscal support required to stabilize the global economy in the wake of COVID-19 will spurr inflation.
Gold is currently trading at $1,700, just roughly 13% away from its all-time-high laid in September of 2011 at $1,920. We have seen a pretty consistent gold uptrend since October of 2018; given the circumstances, the is a strong case for a retest of that high.
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