New Stablecoin USDX Launches On Oracle Blockchain Flare

USDX, a new dollar-pegged stablecoin, is launching on the data-driven blockchain Flare. Developed by crypto custodian Hex Trust Group, the new currency is designed to speed up the DeFi and bridging protocols of the layer-one Ethereum Virtual Machine oracle network.

With a 1:1 peg to the dollar backed by 1 to 3-month T-Bills held on by regulated tier-1 financial institutions, the first stablecoin on Flare is set to increase stability and alleviate volatility concerns for transactions and financial activities on-chain.

To maximize the new product's utility, Hex and Flare partnered with the decentralized credit marketplace Clearpool to create a dedicated pool that allows staking and earning what they call "real-world" yield. Staking the new stablecoin with Clearpool is liquid: users get cUSDX, which can then be used as collateral in Flare's FAassets bridge.

Flare, whose native token FLR has a market cap of $1.1 billion, provides developers with decentralized access to data that they can immediately deploy on apps across multiple chains.

As the tokenization of real-world assets takes flight and millions of dollars flow into decentralized finance daily, Flare has created an interoperable Oracle solution to provide smart contracts with an abundance of highly accurate external intelligence.

The platform's Flare Time Series Oracle (FTSO) smart contract provides real-time information updates, while the State Connector protocol handles data from other blockchains. The network is complemented by Layer Cake, a smart contract that facilitates the movement of assets between different chains.

To guarantee diversity of information, the network partners with over 100 external data providers. In January, Google Cloud announced that it would join the network as a validator and FTSO data provider.

The chain's focus on interoperability and its multiple external partners make having a stablecoin all the more important for the ecosystem, as it allows stakeholders to manage their funds seamlessly.

Hex's HT Digital Assets will maintain USDX's peg. The Hong Kong firm's tokenization ecosystem doesn't rely on its clients' funds. Still, the perception of the stability of its stablecoin stands to gain from Hex Trust Group's reputation as a reliable crypto custodian of major Web3 enterprises and traditional financial and non-financial institutions.

What is interesting is the choice of the name for the new stablecoin. The name is already used by the crypto-backed native stablecoin of the Kava project. But more importantly, it was widely speculated that a recently announced Ripple stablecoin would be called USDX. Flare is a partner of Ripple, making it unlikely they would block the idea.