Tether plans to introduce stablecoin secured by gold and oil

Successful OTC-trader Zhao Dong announced that Tether is going to introduce a stablecoin to the crypto community, which will use a basket of exchange goods as collateral, in particular, gold and oil.

Jean Dong explained that Tether’s desire to issue stablecoins backed by commodities was driven by a desire to avoid the risks associated with storing significant amounts of funds in bank accounts. Dong also noted that Tether is fully secured by reserves – out of all existing 4 billion USDT coins, 3.35 billion are in collateral, and the remaining coins were transferred to Bitfinex as a loan. The crypto exchange managed to attract 1 billion through the sale of its own LEO token, so Bitfinex can easily pay the lender at any time. Dong noted that last month, the company returned Tether 100 million.

In addition, the trader also commented on the news about Tether's plans to launch a CHNT coin, which will be linked to the national currency of China. Dong explained that stablecoin will not be confronted with a policy to control the capital of the Central Bank of China, since CNY and CHNT are completely different – stablecoin is already considered an offshore product. Dong drew attention to the fact that stablecoin will help the Celestial Empire expand the spread of the Chinese yuan in international payments.