VNX Announces Gold-Backed Stablecoins on Tezos in Luxembourg Blockchain Week October 17, 2023 October 17, 2023 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Market NewsOctober 17, 2023 by Kelly Cromley

VNX Announces Gold-Backed Stablecoins on Tezos in Luxembourg Blockchain Week

Luxembourg Blockchain Week: A Nexus of Cryptocurrency Discourse

The recently concluded Luxembourg Blockchain Week, with Tezos as its primary sponsor, has emerged as a focal point for pivotal discussions and revolutionary revelations in the cryptocurrency realm. Amidst this dynamic backdrop, VNX, a prominent digital asset platform, introduced an innovative project, sending ripples through the digital asset landscape.

VNX’s Vision: Gold-Backed Stablecoin Tokens

VNX unveiled its plans for deploying gold-backed stablecoin tokens on the Tezos blockchain, marking a significant leap in the world of blockchain technology and digital assets. This development paves the way for a novel breed of digital assets, where traditional assets like gold intersect with cutting-edge blockchain technology.

The Fiat-Referenced Tokens (FRTs): VNX Euro and VNX Swiss Franc

At the heart of VNX’s vision lie the VNX Euro (VEUR) and VNX Swiss Franc (VCHF). These tokens are designated as fiat-referenced tokens (FRTs), which means they draw their value from their respective fiat currency exchange rates. The underlying asset backing these tokens is none other than VNX Gold. Each issued token directly corresponds to an equivalent value in tokenized gold, securely held in reserve. Within the VNX Platform, users have the liberty to convert these FRTs into VNX Gold, effectively translating the intrinsic value of physical gold into a digital representation tethered to fiat currencies.

VNX Gold: A Tokenized Ownership of Physical Gold

VNX Gold stands as the embodiment of ownership in physical gold. Every gold bar affiliated with VNX Gold tokens carries certification from the London Bullion Market Association (LBMA) and is securely stored in Liechtenstein. The entire token generation process adheres to stringent regulations overseen by the Liechtenstein Financial Market Authority (FMA), underscoring the commitment to security and compliance.

Features of Gold-Backed Stablecoins

The adoption of gold as a foundational asset for digital tokens by VNX aligns with its inherent stability as a historic store of value. To mitigate gold’s price volatility, VNX has introduced a hedging mechanism when it serves as a reserve for the FRTs. This mechanism ensures that the stablecoins maintain their value in accordance with the referenced fiat currency. While VNX Gold currently acts as the primary reserve, the platform retains flexibility to incorporate various other reserves, reflecting changing market conditions. The VNX Platform streamlines this conversion process, and further details can be found in the official VNX documentation, including the Terms and Conditions and the VNX Gold white paper.

VNX’s Momentous Collaboration with Tezos

VNX’s partnership with Tezos signifies a significant stride forward in the digital asset space. Tezos, renowned for its advanced blockchain technology and flourishing DeFi ecosystem, is poised to integrate VNX’s stablecoins into its ecosystem. This partnership is anticipated to amplify liquidity and expand opportunities within the Tezos DeFi landscape.

A Glimpse into the Future

The Luxembourg Blockchain Week has illuminated the potential and evolution of blockchain technology. With Tezos leading the way and VNX’s forward-thinking digital assets on full display, this event has set the stage for a promising future in the cryptocurrency domain. The convergence of traditional assets and innovative blockchain solutions may very well redefine the future of digital assets and the broader financial landscape.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.