Financial firm Antalpha has announced plans to purchase a substantial amount of gold-backed stablecoin XAUt, which could significantly impact the digital asset market.
What is XAUt and Why is Antalpha Interested?
XAUt is a stablecoin issued by Tether, which represents a digital version of physical gold held in a Swiss vault. Each XAUt token corresponds to one troy ounce of gold. Antalpha is interested in XAUt for asset diversification, providing clients access to gold within the digital asset ecosystem, and meeting institutional interest in reliable financial instruments.
Antalpha's Plans for $40 Million XAUt Purchase
The firm plans to acquire up to $40 million in XAUt by the end of June. This purchase signals Antalpha's confidence in XAUt being a key asset in their offerings. This investment will allow Antalpha to build reserves of XAUt for future services and signals belief in the value of this gold-backed stablecoin.
Introducing Crypto Lending Using XAUt
Antalpha intends to launch a crypto lending service utilizing XAUt as collateral. This provides greater stability compared to traditional crypto loans. Using XAUt as collateral will allow setting new liquidation parameters and create additional incentives for using XAUt in lending.
Antalpha's strategic move to invest in XAUt and launch crypto lending indicates growing interest in asset-backed stablecoins and demonstrates the evolution of the digital asset market.
