Cardano Launches USDCx Stablecoin Backed by Circle’s USDC, ADA 3% Down

Cardano has launched its native USDCx stablecoin, backed 1:1 by Circle’s $USDC stablecoin via Circle’s xReserve smart contract.

According to the Input Output Group (IOG), the research and engineering organization behind Cardano, USDCx will “make moving and using dollar value across supported blockchains seamless, providing streamlined access to cross-chain $USDC liquidity.” This will effectively support DeFi liquidity provision, lending, and payments, in addition to real-world asset (RWA) settlement on the blockchain.

Cardano launches $USDC-backed USDCx stablecoin

USDCx was developed by the community-funded Critical Integrations program in conjunction with Pentad and Midgard Labs. With its debut, Cardano is now one among several other networks utilizing stablecoin-on-stablecoin backing, including Sky Protocol (formerly MakerDAO) and Frax Finance.

For the first 10 days following its launch, IOG will subsidize bridge fees for transferring USDCx to Cardano in order to foster initial adoption. Users will however, be responsible for their all other network and DEX fees, but without any third-party contracts.

Source: CoinMarketCap

That said, the token has seen notable uptake by whales and institutional figures such as Grayscale. $ADA futures’ open interest has surged by almost 30% this month, indicating renewed institutional interest despite broader market volatility.

Similar to Ethereum, Cardano plans on offering a regulatory-compliant and privacy-focused sidechain for institutions. Other upcoming developments comprise scalability, cost-effectiveness, and community governance.