The seventh-largest stablecoin, FRAX, is backed by Frax Finance, a decentralised protocol that has partnered with asset issuance chain Noble to extend its reach beyond Ethereum into the Cosmos ecosystem, which consists of roughly 80 blockchains.
Through Noble, the Frax token (FRAX), a stablecoin backed by cryptocurrencies and tethered to the US dollar, will be integrated into the Cosmos ecosystem.
The addition of FRAX and sFRAX to the Cosmos ecosystem, an interoperability network, is anticipated to increase their traction in a variety of uses, such as trading, savings, payments, and collateral, while providing Cosmos users with a decentralised substitute for USDC, the second-largest dollar-pegged cryptocurrency globally.
“We are excited to welcome Noble as our issue partner. Bringing native FRAX issuance to Cosmos has been a focus for some time. “We are thrilled about the potential creative use cases and incentives developed by us and our partners as well as by the larger community of Cosmos appchains and users,” stated Sam Kazemian, the founder of Frax Finance. “We look forward to FRAX and sFRAX being available.”
Frax Finance is a fully functional DeFi ecosystem that provides lending markets, layer 2 platforms, stablecoins, and liquidity staking on Ethereum. At a later time, Cosmos may provide Frax’s other tokens, Frax Price Index (FPI) and frxETH.
Noble is a blockchain created specifically for the Cosmos programme and intended to issue native digital assets within the Comos ecosystem. In September 2023, Circle’s USDC was extended to Cosmos through Noble. As of the time of publication, Noble has more than $195 million USDC in circulation, which constituted 0.6% of the total USDC supply across all blockchains.
Noble helps assets integrate seamlessly with Osmosis, dYdX, Celestia, Sei, Injective, and other important Cosmos chains. Over $2.5 billion worth of cryptocurrency assets have been moved between Cosmos in the last four weeks.