- The Cardano community will get to use USDCx on different DeFi protocols in two weeks.
- The strategic launch of USDCx will be backed by trust in Circle’s xReserve protocol.
- The Cardano ecosystem has lagged in the stablecoin market compared to its competitors.
The Cardano (ADA) network is preparing to launch the USDCx stablecoin before the end of February 2025. In a bid to improve liquidity of DeFi protocols and compete with its peers, the Cardano network will soon have a regulatory-compliant stablecoin dubbed USDCx, which mirrors USDC by Circle Internet Group.
Cardano Network to Unveil USDCx by the End of Feb
According to top Cardano network developers, led by founder Charles Hoskinson and Anastasia Labs CEO Philip DiSarro, the USDCx will be launched on the mainnet by the end of this month. The USDCx is a proxy of Circle in that it will be backed 1:1 with USDC through the xReserve infrastructure.
“… USDCx on Canton, Stacks, or Aleo does not even come remotely close to the UX, interoperability, and feature robustness as USDCx on Cardano,” DiSarro stated.
After the official launch of the USDCx on Cardano, crypto users can go to their respective exchanges, choose the Ethereum address to deposit this stablecoin directly from their Cardano wallets.
Related: Cardano Price Prediction: ADA Tests Trendline Support After Hoskinson’s Market Warning
What’s the Importance?
The upcoming launch of the USDCx will have a profound impact on the Cardano DeFi ecosystem. At press time, the Cardano network has a total value of about $138 million and a stablecoin market cap of around $37.2 million, according to DeFiLlama.
Source: DeFiLlama
The strategic launch of USDCx will help improve Cardano’s DeFi liquidity, thus boosting its TVL. Moreover, the Cardano network has lagged in stablecoins growth compared to its competitors led by Solana (SOL) with a TVL of about $6.6 billion and a stablecoins market cap of around $15.2 billion.
The Cardano stablecoin market share has been outshined by XRPL through Ripple Labs-backed Ripple USD (RLUSD), which has a market cap of about $417 million at press time. As such, the strategic launch of USDCx, a proxy of USDC, will boost Cardano’s DeFi prospects, especially amid the ongoing implementation of the Midnight (NIGHT) project for enhanced security and scalability.
Bigger Market Picture
The imminent launch of USDCx on Cardano will play a crucial role in the mainstream adoption of ADA. Furthermore, USDCx transactions on the Cardano network will be paid through ADA coins on different DeFi platforms.
As such, the overall demand for ADA coins is well-positioned to grow exponentially with the rising demand for stablecoins. Furthermore, the Cardano network seeks to launch the USDCx with compliance with the recently enacted Genius Act in the United States.
Related: Hoskinson Confirms LayerZero Integration as Cardano Expands Cross-Chain Access
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Source: https://coinedition.com/cardano-to-boost-defi-liquidity-via-usdcx-launch-in-two-weeks/