Monday, 17 June 2024
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Hex Trust Group launches, USDX, the first native stablecoin on Flare Network

Hex Trust Group launches USDX

  • Hex Trust launches USDX, the first native stablecoin on Flare, backed 1:1 by USD.
  • USDX can be staked in Clearpool’s T-Pool for real-world yield without lock-ups.
  • USDX aims to enhance Flare’s DeFi ecosystem, supporting lending and borrowing.

Hong Kong-based digital asset custodian, Hex Trust Group, has launched USDX, the first native stablecoin on the Flare network.

The move by Hex Trust Group will bolster the decentralized finance (DeFi) ecosystem on Flare, a layer-1 blockchain tailored for data-intensive applications.

USDX stablecoin by HT Digital Assets

USDX, developed by HT Digital Assets, Hex Trust’s tokenization ecosystem, is a stablecoin backed 1:1 against the U.S. dollar or equivalently valued assets.

The stablecoin’s reserves primarily consist of 1-3 month Treasury Bills, held securely by regulated tier-1 financial institutions, ensuring stability and trust in the stablecoin’s value.

The stablecoin is designed to serve as a fundamental building block for DeFi on the Flare blockchain. It will be available for various applications, such as lending and borrowing protocols, as well as perpetual futures exchanges.

USDX’s integration with Clearpool

While launching the USDX stablecoin, Hex Trust Group also announced a strategic partnership with Clearpool, a decentralized credit marketplace.

Through this collaboration, USDX holders can stake their tokens in a dedicated T-Pool created by Clearpool.

This innovative staking mechanism allows users to earn real-world yields without the constraints of lock-up periods.

In return for staking USDX, users receive cUSDX tokens, which can be utilized as collateral across DeFi protocols on the Flare network, including Flare Labs’ FAsset system. This system supports the use of non-smart contract assets like Bitcoin (BTC) and Dogecoin (DOGE) in DeFi applications.

Market impact and future prospects

Hex Trust’s CEO, Alessio Quaglini, emphasized that the launch of USDX will reduce cryptocurrency market volatility and streamline transactions. He highlighted that USDX bridges the gap between traditional financial security and blockchain innovation, enhancing trust and security within the digital asset ecosystem.

In addition, Hugo Philion, the Co-Founder of Flare, remarked on the essential role of stablecoins in developing a vibrant DeFi ecosystem and noted that the collaboration between…

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