Hex Trust Group, a prominent crypto custodian, has launched USDX, a new stablecoin on the layer-1 blockchain Flare. This marks the first native stablecoin issuance on Flare, poised to significantly enhance the blockchain's decentralized finance (DeFi) ecosystem.

The newly introduced USDX stablecoin is fully backed at a 1:1 ratio by the U.S. dollar or equivalently valued assets, ensuring robust support and stability. Additionally, USDX offers a staking mechanism that integrates with a dedicated T-Pool, established by the decentralized credit marketplace Clearpool. Users staking USDX will receive cUSDX tokens in return, which can be utilized as collateral across various DeFi protocols on the Flare blockchain.

"The collaboration between USDX and Clearpool on Flare delivers a 1:1 backed stable asset with immediate access to real-world yield," stated Hugo Philion, co-founder of Flare. "This will be particularly useful for FAsset agents, allowing them to put their stable collateral to work even while it remains locked within the system."

Alessio Quaglini, CEO of Hex Trust, emphasized the significance of this launch in mitigating cryptocurrency market volatility and enhancing transactional efficiency. "The introduction of USDX will streamline transactions and provide a stable asset for DeFi activities on Flare," Quaglini noted.

Hex Trust's initiative is expected to spur an increase in DeFi activity on Flare, facilitating broader use of the stablecoin across lending protocols and exchanges. This development aligns with Flare's recent progress, including a $35 million private funding round in February, with notable investors such as Kenetic and Aves Lair. Currently, Flare boasts a total value locked (TVL) of $8 million, according to DeFiLlama.

The launch of USDX is a pivotal step for Flare as it aims to bolster its DeFi infrastructure and attract more users and developers to its ecosystem. By providing a stable and reliable digital asset, Hex Trust and Flare are set to drive significant growth and innovation within the DeFi space.