Hong Kong-based crypto custodian Hex Trust Group has recently introduced its native decentralized stablecoin, USDX, on the Flare blockchain. This stablecoin is backed 1:1 by the U.S. dollar and serves as a DeFi primitive on Flare, offering various financial opportunities to users.
Unlike centralized stablecoins such as USDC and USDT, which are backed by real-world cash, USDX is collateralized by cryptocurrencies and operates using algorithmic mechanisms. This decentralized stablecoin is a crucial building block for decentralized finance (DeFi) applications on Flare, enabling features like lending and borrowing protocols, perpetual futures exchanges, and staking opportunities.
USDX holders can stake their tokens in a dedicated T-Pool created by the DeFi credit marketplace Clearpool, allowing them to earn real-world yields. The collaboration between USDX and Clearpool on Flare provides users with immediate access to stable assets while offering opportunities for generating returns on digital assets.
The introduction of USDX is expected to mitigate crypto market volatility, streamline transactions, and enhance security and trust within the digital asset ecosystem. As adoption by Flare-native projects increases, USDX offers new and innovative ways for users to interact with the DeFi space while maintaining the stability of a 1:1 backed stablecoin.
Hex Trust, the company behind USDX, is a licensed digital asset custodian that focuses on serving protocols, foundations, financial institutions, and the web3 ecosystem. Their tokenization ecosystem, HT Digital Assets, powers the USDX stablecoin, bridging the gap between traditional financial security and blockchain innovation.
The launch of Hex Trust’s USDX stablecoin on the Flare network, in collaboration with Clearpool, represents a significant evolution in stablecoins and DeFi applications. By offering a decentralized stablecoin backed by cryptocurrencies and providing opportunities for users to earn yields, USDX is poised to play a crucial role in the growing DeFi ecosystem on Flare.