Zhao Dong: Tether is Considering to Issue Stablecoins Pegged to Gold, Oil and Rubber
Stablecoin issuer Tether is considering to issue stablecoins backed by commodities like gold, crude oil, rubber, etc, according to Zhao Dong, a shareholder of Tether’s sister company Bitfinex.
In an interview with Bitkan, a local cryptocurrency service provider, Zhao Dong said that apart from the Chinese yuan-pegged stablecoin CNHT, Tether is also considering to issue other stablecoins pegged to bulk commodities such as gold, crude oil and rubber, in a bid to provide more investment channels for the market.
Days ago, Zhao revealed Tether’s big move of issuing CNHT, a stablecoin pegged to the offshore Chinese yuan, which has triggered heated discussions in the crypto space, with many KOLs (key opinion leaders) in the country holding a negative attitude towards it as they raised concerns that CNHT might trigger the Chinese government’s nerve.
According to him, Tether USDT currently has a share standing at 80% of the entire stablecoin market, with its market cap up to $4 billion. The Tether team think that such a high percentage is risky and hope to cap its total issuance at $5 billion.
He added that besides USD, Tether would support more fiat currencies. A stablecoin pegged to offshore Chinese yuan is certainly one of Tether’s plans, considering China is a large trading nation, said Zhao.
If it goes well, CNHT will be the fourth stablecoin to Tether’s basket, in addition to three existing stablecoins pegged to the U.S. dollar (USDT), euro (EURT) and the Japanese yen (JPYT). JPYT, however, does not appear to have been issued yet. After these fiat-pegged stablecoins, it is eyeing on commodity-backed ones.
Tether has made no comments on the news as of the press time.