XMG tokens in short are stablecoins, they are built on a blockchain network just as most tokens are but these are very different. They are pegged to and derive their pricing from the designated fiat currency they may represent. For example the USXM token is pegged to the pricing of the US Dollar. This is where the stability comes into play, it promotes liquidity and accessibility.
The definition of a fiat currency is important
Fiat currency is a type of government-issued money that is not backed by a physical commodity, such as gold or silver. Its value is derived from the stability and reputation of the issuing government, as well as supply and demand in the market.
It is that stability that makes stablecoins a wise choice when traders are exiting positions on an exchange, when a holder is using it as a cross-border payment of some sort or when someone is onboarding to a digital asset platform using traditional means.
How do XMG Tokens Function?
Key Characteristics
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Pegged to Fiat Currency
XMG tokens are pegged to fiat currencies on a 1-to-1 basis. For example, 1 USXM token is equivalent to the pricing of 1 U.S. Dollar. This stable peg ensures that the value of the token remains consistent with the underlying fiat currency. -
Issuance and Redemption
XMG tokens are issued to approved institutional members who exchange fiat currency for the equivalent value in XMG tokens. These members can redeem their XMG tokens for fiat currency, subject to certain minimum and maximum limits. When tokens are redeemed, they can be recirculated or destroyed to manage the token supply. -
Blockchain Integration
Initially created on the Pecu Novus blockchain, XMG tokens over time will be available on various blockchain networks such as Ethereum and Tron for example. This multi-chain approach will allow for greater flexibility and integration within the broader digital currency ecosystem. -
Stability and Transparency
XMG tokens are backed by digital asset reserves that are equal to or greater than the total number of XMG tokens in circulation. This ensures the stability of the token and provides transparency to users. -
Use Cases
XMG tokens are ideal for trading, offering a stable asset to move in and out of cryptocurrency positions without the risk of volatility. They are also well-suited for cross-border payments, enabling cost-effective and inclusive financial transactions, particularly for the unbanked. -
XMG Payment Portal
The XMG payment portal enhances the utility of XMG tokens by allowing approved groups to integrate the portal into their systems for on-chain transactions. This solution is versatile, supporting online and physical commerce, ticketing, distribution and being integrated into traditional payment systems. It offers branding opportunities for approved groups so that the user experience is seamless for their customers. You can look at the payment portal similar to how PayPal or Square are geared towards traditional financial systems, but tailored specifically for the crypto space.
New Token Issuance
The XMG Digital Asset Network only issues new XMG tokens when an exchange or institution requests them and purchases them. They are required to go through a due diligence process in order to adhere to AML & KYC compliance.
Simple and Transparent Integration
The XMG Digital Asset Network will have tools that will allow exchanges, payment portals and platforms of all sorts to simply integrate the XMG tokens with their ecosystem.
XMG for
Individuals
XMG Tokens will offer liquidity and stability on decentralized and centralized exchanges. This will give traders access to a greater array of opportunities.
XMG for
Merchants
XMG Tokens can become a value add for merchants who integrate them, as it can open up an additional consumer base and growth opportunities.
XMG for
Exchanges
