Hong Kong-based crypto custodian Hex Trust Group has introduced USDX, a new stablecoin on the layer-1 blockchain Flare, as per a press release. USDX is the first native stablecoin on Flare, set to enhance decentralized finance (DeFi) activities on the platform. It will be accessible for use in lending protocols and exchanges, and will feature a staking mechanism in a dedicated T-Pool created by the decentralized credit marketplace Clearpool.
Users staking USDX will receive cUSDX in return, which can be utilized as collateral across DeFi protocols on Flare.
The stablecoin is backed 1:1 by the U.S. dollar or equivalently valued assets, according to the press release.
Flare’s co-founder, Hugo Philion, highlighted the benefits of this collaboration, stating that it offers a 1:1 backed stable asset with immediate access to real-world yield, which will be beneficial for FAsset agents, allowing them to utilize their stable collateral even while it remains locked in the system.
Hex Trust’s CEO, Alessio Quaglini, commented that the launch of USDX will help “reduce cryptocurrency market volatility” and “streamline transactions.”
In February, Flare raised $35 million in a private funding round from investors such as Kenetic and Aves Lair. Currently, the blockchain has a total value locked (TVL) of $8 million, according to DefiLlama.
Source: coindesk.com
