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Competition for Bitcoin and Tether: Bitfinex brings gold-covered stablecoin

  • Bitfinex will launch a new stablecoin on the market: Tether Gold.
  • This new token is said to be covered by genuine gold reserves.

Bitfinex is one of the oldest and largest exchanges on the cryptocurrency market and has caused a sensation and many discussions since its launch in 2012. One of the most successful products is the digital asset Tether, which is covered by USD in a ratio of 1:1 and is linked to its price.

Another stable coin on its way into the crypto market

Bitfinex is considered innovative and controversial at the same time. The platform’s latest project is the launch of a token covered by gold bars. This should be stable in value and bear the name Tether Gold. Paolo Ardoino, CTO of Bitfinex and Tether, explains in an interview with “The Block” that Tether Gold is a similar digital asset to Tether USDT.

The demand for an asset covered by physical gold has risen sharply in recent weeks and months among users of the platform.

So we always listen to to the people that we work with our customers, and we decided to do it. Of course, we’ll be fully gold backed. We are working the system to be sure that every single you know, every single tether gold is linked to a specific gold bar.

Ardoino emphasizes that many legal questions have to be clarified, but that this project should be implemented in any case. Furthermore, this would arouse the interest of institutional investors as their capital is secured by gold:

There are a lot of legal things to to do to take care about. But I believe that it’s it can be one of the things that that brings more and more interest in our space also from traditional finance.

Tether Gold will be launched in the first quarter of next year and will be available as an alternative to USDT, CNY (the digital yuan of the platform, not to be confused with real digital yuan that China will launch next year) for users of the platform.

Bitfinex plans for 2020

In early October, Bitfinex, Tether and Digifinex were sued for manipulation of the Bitcoin prize. As a result of this event and further criticism from investors and customers of the platform, Bitfinex intends to strive for greater transparency in its business activities.

Bitfinex also plans to introduce Bitcoin options, as announced by Bakkt and the CME. These will be available and operated through iFinex Financial Technologies Limited on Bitfinex.

Furthermore, the company plans to purchase voucher cards on Bitfinex through a new partnership. This is to promote the adaptation of Bitcoin and cryptocurrencies in general.

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About Author

Collin is a Bitcoin investor of the early hour and a long-time trader in the crypto and forex market. He's fascinated by the complex possibilities of blockchain technology and tries to make matter accessible to everyone. His reports focus on developments about the technology for different cryptocurrencies.

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