Digital Assets: Mashinsky’s DeFi Platform Celsius Adds Tokenized Bullion via Tether Gold

May 11, 2020 | Digital Assets
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In a push towards non-correlated assets Celsius may add silver and other commodities.

Alex Mashinsky is best known as the inventor of VoIP, which over a billion people worldwide use to make free calls over the Internet. He is also the chief executive of Celsius Network, a community-based Proof-of-Stake blockchain protocol that allows members to borrow dollars against crypto-assets and to earn interest when they deposit and lend their crypto out. He spoke to COIN TELEGRAPH about the recent introduction of Tether Gold (XAUT) on the Celsius platform.

About disrupting banks and non-correlation

Celsius Network is a bank disruptor, saying on its website that “With Celsius Network you can unbank yourself.” Mashinsky wants billions of people to go from VoIP to MoIP (Money over IP) and thinks that capitalism and the US Fed have gone downhill since 1971 after the US went off the gold standard.

“In the last month, the Fed printed more money than it did in the last one hundred years,” he said to Forbes in an interview earlier this month. “We are moving into a Keynesian Modern Economic Theory on steroids. We need to stop and go back to the Austrian Economic Theory which relies on savings and no monetary intervention.”

He alleges that banks leveraged “free money that the Fed created for them. However, Americans lost their life savings due to inflation and monetary debasement.”

Tokenised gold (and other commodities)

Given the ills from fiat currencies, Mashinsky says his decentralized finance or DeFi platform Celsius Network offers a bridge for users from fiat currency into non-correlated and decentralized assets such as gold, silver, and cryptocurrencies.

However, things are changing he observes.

“For the first time in history, gold is earning interest in gold,” Mashinsky said to COIN TELEGRAPH. “Every week we give you a small nugget of gold on top of the gold you already own, in gold.”

“That’s never existed in history,” he continued. “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.”

Further, Mashinsky estimates that most people have either zero or close to zero uncorrelated assets. “I think everyone should have two to five percent of their portfolio in [non-correlated assets] as insurance against debasement,” he comments.

Mashinsky’s gold standard: combining non-correlation and yield

His vision is for a unique combination of non-correlation and yield.

To that end, he is looking to add silver and even other commodities. Celsius could tokenize them and generate yield.

He hopes to have a broad enough portfolio that would attract many more people to join, even older people.

Related Story:  Digital Assets: Gold-backed Tokens Provider Cache Ties With Onchain Custodian

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