Hong Kong-based crypto custodian Hex Belief Group has issued USDX, a brand new stablecoin on layer-1 blockchain Flare, according to a press release.

USDX turns into the primary native stablecoin on Flare because the blockchain gears up for a lift in decentralized finance (DeFi) exercise. Will probably be out there to make use of throughout lending protocols and exchanges and also will function staking mechanism to a devoted T-Pool, which is created by decentralized credit score market Clearpool.

These staking USDX will obtain cUSDX in return, which can be utilized as collateral throughout DeFi protocols on Flare.

Backing for the stablecoin is maintained at a 1:1 ratio towards the U.S. greenback or equivalently valued belongings, the press launch added.

“The collaboration between USDX and Clearpool on Flare delivers a 1:1 backed steady asset with speedy entry to real-world yield,” Flare’s co-founder Hugo Philion mentioned. “This will likely be notably helpful for FAsset brokers, placing their steady collateral to work even whereas it is locked within the system.”

Hex Belief’s CEO Alessio Quaglini added that the launch of USDX will “cut back cryptocurrency market volatility” and “streamline transactions.”

Flare raised $35 million in a personal spherical in February from the likes of Kenetic and Aves Lair. The blockchain at the moment has $8 million in complete worth locked (TVL), in response to DefiLlama.

Flare’s native token (FLR) rose by 2.4% in a two-hour interval following the announcement.

UPDATE (Could 21, 11:52 UTC): Provides FLR value response.