ETHLEND is to let peer-to-peer borrowers post a gold-backed DGX token as collateral when seeking funds.
The crypto-backed P2P platform has partnered with Singapore-based fintech firm DigixGlobal, which launched the DGX tokens in April 2018. Each token represents one gram of 99.99 per cent, London Bullion Market Association-approved gold.
This is believed to be the first time that users can use real-world assets in the crypto space.
ETHLend lets borrowers request loan amounts and post other digital currencies as collateral, while paying interest on the loans.
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Borrowers can post any digital currency as collateral and loans can be made in Bitcoin or Ethereum or LEND tokens.
“Digix is a pioneer in the tokenization of commodities,” said Stani Kulechov, chief executive of ETHLend.
“With our support, DGX holders can now pledge their tokens for loans while maintaining exposure to the fluctuating price of gold. We’re broadening our market beyond security and utility-backed tokens, enabling our users to participate in exchanging with tangible materials.”
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Shaun Djie, co-founder of DGX described the token as the “ideal collateral” for ETHLend users as the price of the token is “conventionally stable.”
“Listing DGX on ETHLend feels like a natural next step to service the lending needs of the crypto community,” Djie said.
“We are excited to partner with ETHLend to provide our users with new ways to digitize and tokenize physical assets.”
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