Hex Trust boosts DeFi on Flare with USDX stablecoin and Clearpool yield vault

Investing.com -- Hong Kong-based crypto custodian Hex Trust Group has launched its native decentralized stablecoin USDX on the Flare blockchain.

Backed 1:1 by the U.S. dollar, USDX serves as a DeFi primitive on Flare, with reserves primarily held in 1-3 month Treasury Bills by regulated tier-1 financial institutions.

Developed by HT Digital Assets, Hex Trust's tokenization ecosystem, USDX serves as a building block for DeFi and bridging applications on Flare. These include lending and borrowing protocols, perpetual futures exchanges, and staking opportunities. 

USDX holders can earn real-world yields by staking their tokens in a dedicated T-Pool created by DeFi credit marketplace Clearpool.

"Stablecoins are fundamental for the development of a vibrant DeFi ecosystem. The collaboration between USDX and Clearpool on Flare delivers a 1:1 backed stable asset with immediate access to real-world yield," said Flare Co-Founder Hugo Philion.

Alessio Quaglini, CEO&Co-Founder of Hex Trust, added: “The launch of Hex Trust's first native stablecoin, USDX, on the Flare network, in collaboration with Clearpool, marks a pivotal evolution in stablecoins. Powered by Hex Trust's tokenization ecosystem, HT Digital Assets, USDX bridges the gap between traditional financial security and blockchain innovation.”

USDX's introduction is said to mitigate crypto market volatility, streamline transactions, and enhance security and trust within the digital asset ecosystem. As adoption by Flare-native projects grows, USDX will offer new opportunities for users to generate returns on their digital assets.

Unlike centralized stablecoins like USDC and USDT, which are backed by real-world cash or cash equivalents, decentralized stablecoins are collateralized by cryptocurrencies and often operate using algorithmic mechanisms.

Established in 2018, Hex Trust is a licensed digital asset custodian that caters to protocols, foundations, financial institutions, and the web3 ecosystem. It offers custody, DeFi, brokerage, and other services built on regulated infrastructure. 

Clearpool CEO&Co-founder Jakob Kronbichler noted: “Launching a custom T-Pool for USDX on Flare is great for both everyday users who want to earn a real-world yield from their stable holdings, and for FAssets agents who can earn additional yield for their USDX while it's collateralized in the system.”