The Cardano blockchain ecosystem will integrate USDCx, a variant of Circle’s USDC stablecoin, by the end of February.
On February 15, Philip DiSaro, CEO of the smart contract development firm Anastasia Labs, confirmed that “USDCx” will go live on the network before the end of the month.
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Cardano Targets Stablecoin Deficit With Upcoming USDCx Debut
USDCx is a dollar-denominated stablecoin backed 1:1 by USDC held through Circle’s xReserve infrastructure. Circle is the issuer of USDC, the second-largest stablecoin by market capitalization.
According to DiSaro, USDCx will function identically to native USDC for retail users, allowing for seamless transactions across decentralized applications.
However, he noted that the asset differs slightly in its redemption mechanics compared to USDC.
Still, DiSaro emphasized that the new stablecoin retains full USDC utility for the broader Cardano ecosystem.
Nonetheless, market observers have noted that the launch represents a critical infrastructure upgrade for Cardano.
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Notably, the Charles Hoskinson-led blockchain has historically struggled to attract the deep, stablecoin liquidity seen on rival chains such as Ethereum and Solana.
Data from DeFiLlama shows it hosts less than $40 million in stablecoin supply, compared with the billions held on rivals such as Ethereum.
Previous attempts to bootstrap stablecoin liquidity on Cardano have largely failed to gain traction, leaving the network at a competitive disadvantage in the decentralized finance sector.
So, this move is designed to address the network’s long-standing liquidity fragmentation and bolster its decentralized finance capabilities.
Meanwhile, the initiative arrives as Cardano attempts to shed its reputation for isolation through an integration with LayerZero. This interoperability protocol facilitates communication between separate blockchains.
By leveraging LayerZero, Cardano applications can theoretically interact trustlessly with more than 50 other networks, including Ethereum and Solana.
However, investors have yet to react positively to these structural changes.
BeInCrypto’s data shows that the network’s native ADA token has declined more than 25% over the past month to a 2-year low of $0.24. It has recovered to $0.28 as of press time.
This price performance reflects the broader crypto market downtrend and skepticism about the chain’s ability to capture market share in an increasingly crowded crypto economy.
Source: https://beincrypto.com/cardano-stablecoin-launch-usdcx/
