On May 21, 2024, Hex Trust Group announced the introduction of a native stablecoin, USDX, for the Flare network. Hex Trust also revealed that a Clearpool vault, enabling holders to earn a real-world yield, will debut alongside USDX.
Hex Trust to Launch USDX Stablecoin on Flare, Offering Real-World Yield
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Hex Trust’s USDX Stablecoin and Clearpool Vault Aim to Enhance Flare’s Defi Ecosystem
Founded in 2018, the digital asset custodian Hex Trust Group unveiled USDX on Tuesday, a stablecoin to be issued on Flare. Flare is a blockchain platform designed for decentralized data acquisition and utilization across various applications. Developed by HT Digital Assets, USDX will be backed 1:1 with the U.S. dollar. The reserves, primarily comprising 1-3 month Treasury notes, will be securely held by a regulated tier-1 financial institution, Hex Trust communicated to Bitcoin.com News.
The goal is to offer a “vital [ decentralized finance] primitive on Flare,” the announcement stated. Additionally, USDX can be staked to a dedicated T-Pool created by Clearpool to provide real-world yield. Alessio Quaglini, CEO and co-founder of Hex Trust, remarked that the initiative “marks a pivotal evolution in stablecoins.”
“Powered by Hex Trust’s tokenization ecosystem, HT Digital Assets, USDX bridges the gap between traditional financial security and blockchain innovation,” Quaglini stated. “It promises to reduce cryptocurrency market volatility, streamline transactions, and enhance trust and security within the digital asset ecosystem.”
USDX comes at a time when a slew of new stablecoins have appeared and Ripple Labs recently announced launching a dollar-pegged token as well. Paypal recently launched a stablecoin called PYUSD and Ethena’s USDE has become the fifth largest stablecoin by market valuation by providing yield. Another newcomer was introduced by Hong Kong’s First Digital and its stablecoin FDUSD is the fourth largest by valuation. Flare co-founder Hugo Philion said stablecoins are fundamental for the development of a vibrant defi ecosystem.
“The collaboration between USDX and Clearpool on Flare delivers a 1:1 backed stable asset with immediate access to real world yield,” Philion told Bitcoin.com News. “This will be particularly useful for FAsset agents, putting their stable collateral to work even while it’s locked in the system.”
What do you think about the announcement from Hex Trust to launch a stablecoin on Flare? Share your thoughts and opinions about this subject in the comments section below.
