Monolith, a decentralised banking platform which is powered on Ethereum, has partnered with MakerDAO and DigixDAO, as reported by CryptoBriefing. Monolith users can thus load the cryptocurrencies DAI, DGX and DGD. Currently Monolith supports ETH and TKN, which is its own token.
Monolith is a mobile application which contains a non-custodial contract wallet for token storage. These coins can be exchanged and loaded on the Monolith VISA debit cards, effectively allowing users to pay using cryptocurrency. Monolith is available on iOS, and plans to release an Android version soon.
Interestingly, DGX is a cryptocurrency whose value is tied to one gram of gold. This, therefore, means that users on Monolith can spend gold-backed cryptocurrency on day-to-day expenses through the decentralised financial platform.
It is important to note that part of the transaction fees go to Monolith’s currency, the TKN, which itself is backed by a basket of ERC-20 tokens, which include DAI, DGX and DGD. This approach is similar to that employed by Binance and its own cryptocurrency, the Binance Coin (BNB). The mechanism creates a continuous demand for the TKN token.
On the other hand, DAI is a stablecoin which is tied to the value of the US Dollar, similar to Tether’s USDT or the US Dollar Coin (USDC). However, unlike these popular stablecoins, it is not backed directly by the USD. Rather, it is backed by crypto collaterals which can be seen on the Ethereum blockchain. MakerDAO uses margin trading to respond to changing market conditions and preserve its value against fiat currencies.
DGD is also a cryptocurrency supplied by DigixDAO, but it is the native Ethereum-based ERC-20 token which governs the Digix network. DGX is the second token, whose value is backed by gold. More Digix tokens representing other precious metals such as silver and platinum have plans of being rolled out.