- A new dollar-denominated token, USDN, is being introduced for the first time on the Cosmos-based Noble blockchain using decentralized stablecoin technology from stablecoin company M^0.
- The Ethereum protocol M^0 offers a “stablecoin extension engine,” which lets programmers alter its canonical stablecoin, $M, in a number of ways.
On Thursday, stablecoin startup M^0 announced that it is the first to use its decentralized stablecoin infrastructure to introduce a new dollar-denominated token, USDN, on the Cosmos-based Noble blockchain.
For the popular M^0 project, which aims to close the gap between the strength of decentralized networks and permissioned stablecoin issuance, this is something of a moment of truth.
M^0 is an Ethereum protocol that offers a “stablecoin extension engine,” allowing developers to alter its original stablecoin, $M, and add features like yield distribution, branding, and integrated compliance tools.
Stated differently, the M^0 network provides “turnkey middleware” solutions for stablecoin launches, supported by investors such as Bain Capital, Galaxy Ventures, and Wintermute Ventures. It wants to develop into a “federation of stablecoin issuers,” in typical crypto form.
Only authorized “minters” who have been approved by governance token holders and adhere to M^0’s defined norms and local regulations are permitted to issue $M stablecoins. The only assets supporting the token are short-dated U.S. Treasurys.
For its part, Noble is an application-specific blockchain, or “appchain,” that is primarily concerned with using the Inter-Blockchain Communication (IBC) protocol to enable stablecoin transfers between other blockchains. It serves as a middleman for stablecoin issuers such as Circle, Hashnote Labs, Monerium, and Ondo Finance, allowing them to list their coins on an increasing number of Cosmos-based chains (around 50 as of the last count).
In its first year, the company has already assisted in facilitating over $5 billion in transaction volume, and it recently concluded a $15 million Series A funding round led by Paradigm.
USDN will use $M as its fundamental building component in order to offer “a credibly neutral digital dollar” to the larger Interchain ecosystem.
By emphasizing safety, programmability, and interoperability, this partnership not only promotes the use of Cosmos-native stablecoins but also establishes a new standard for stablecoin architecture. We are eager to rethink the potential of stablecoin infrastructure in the context of decentralized finance.
The yield that the M^0 protocol receives from these supporting assets is distributed to authorized distributors known as “earners,” which include market makers Caladan, Galaxy, GSR, and Wintermute, in contrast to popular stablecoins USDT and USDC, which transfer interest revenues to their issuers Tether and Circle.
Additionally, M^0 is made to allow these customized cryptodollars to share yield distribution, security, and liquidity, so as the network expands, all M-based stablecoins gain.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
