Cardano has launched its native USDCx stablecoin, backed 1:1 by Circle’s USDC stablecoin via Circle’s xReserve smart contract. The project was developed by the IOG in conjunction with Circle and the community-funded Critical Integrations program, together with Pentad and Midgard Labs.
With its debut, Cardano joins a growing set of networks utilizing stablecoin-on-stablecoin backing, including Sky Protocol (formerly MakerDAO) and Frax Finance. The project underscores Cardano’s push to expand cross-chain liquidity within a compliant framework.
For the first 10 days after launch, IOG will subsidize bridge fees for transferring USDCx to Cardano to foster initial adoption. Beyond that, users will be responsible for their remaining network and DEX fees, with no third-party contracts. The token has drawn uptake from whales and institutions such as Grayscale, and ADA futures open interest has surged by almost 30% this month, signaling renewed institutional interest amid broader market volatility. Cardano also plans a regulatory-compliant and privacy-focused sidechain for institutions, with ongoing work on scalability, cost-effectiveness, and governance.
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