According to a press statement, USDX, a new stablecoin on layer-1 blockchain Flare, has been released by Hong Kong-based crypto custodian Hex Trust Group. Ahead of a surge in decentralised finance (DeFi) activity on the blockchain, USDX becomes the first native stablecoin on Flare.
It will have a staking mechanism to a specific T-Pool, which is established by the decentralised credit marketplace Clearpool, and be used across lending protocols and exchanges. In exchange for staking USDX, holders will obtain cUSDX, which can be utilised as collateral on Flare for various DeFi protocols.
The press release further stated that the stablecoin’s backing is maintained at a 1:1 ratio against the US dollar or other assets of comparable worth. Hugo Philion, a co-founder of Flare, stated, “The partnership between USDX and Clearpool on Flare delivers a 1:1 backed stable asset with immediate access to real-world yield.” “FAsset agents will find this especially helpful as it allows them to utilise their stable collateral even when it is locked within the system.”
Alessio Quaglini, CEO of Hex Trust, has stated that the introduction of USDX will “streamline transactions” and “reduce cryptocurrency market volatility.” In February, Flare raised $35 million from investors including Kenetic and Aves Lair in a private deal. As of right now, Defi Llama reports that the blockchain has $8 million in total value locked (TVL).
Flare’s native token (FLR) rose by 2.4% in a two-hour period following the announcement.