Alex Mashinsky, the chief executive of decentralized finance, or DeFi, and the inventor of voice-over-internet-protocol (VOIP), spoke about the platform’s support to Tether Gold (XAUT) in recent times.
The CEO of DeFI explained that the support for tokenized gold is based on the premise that it acts as a bridge for customers who churn their portfolio comprising of decentralized and non-correlated assets.
Mashinsky said “For the first time in history, gold is earning interest in gold. Every week we give you a small nugget of gold on top of the gold you already own, in gold.”
He added “That’s never existed in history. Every time you bought gold, you had expenses, you had storage fees and insurance fees, or funds fee – fee, upon fee, upon fee. We have a positive yield of three or four percent per year.”
By providing support to gold, Machinsky said that the Celsius now offers backing for a non-correlated asset that does not exhibit volatility. With XAUT, clients can shuffle between fiat currency and non-correlated assets, even if there is no interest in cryptocurrencies.
Machinsky said “Most people have close to 100% of their assets denominated in their local currency. So they have real estate, they have bonds, stock, whatever. They hold all of those things in one basket, they just don’t realize it’s one basket. They have either zero or close to zero uncorrelated assets.”
He further said “I think everyone should have two to five percent of their portfolio in [non-correlated assets] as an insurance against debasement.”
Going forward, Mashinsky said that Celsius wish to start supporting other tokenized commodities and non-correlated assets.
He further stated that “I really want to add silver, maybe even a few commodities if we can tokenize them and generate yield. We want that unique combination of non-correlation and yield, and I think if we have a broad enough portfolio that is going to enable many more people to join.”
“Maybe even older folks may join just because they want gold. They might never touch the Bitcoin side of it, but, if you have all the options, then you really expand the community and all these people are in the digital assets market.”
He finished his interaction by saying “Some of them might not even realize that they are in the digital asset market, but I think that is an opportunity for us.”
