The Cosmos-powered Noble blockchain has become the first to launch a new dollar-denominated token, USDN, using decentralized stablecoin infrastructure provided by stablecoin startup M^0, according to an announcement on Thursday. The popular M^0 project is attempting to bridge the gap between permissioned stablecoin issuance and the power of decentralized networks.
M^0 is an Ethereum protocol that provides a “stablecoin extension engine” that allows developers to take M^0’s iconic stablecoin, $M, and customize a variety of features, including branding, built-in compliance tools, and yield distribution. The M^0 network, backed by firms including Bain Capital, Galaxy Ventures, and Wintermute Ventures, offers turnkey solutions for launching stablecoins. The issuance of $M stablecoins is limited to approved “minters,” which must be approved by governance token holders and follow policies agreed upon by the established M^0 rules, as well as their local regulations. The token is backed exclusively by short-term U.S. Treasury bonds.
Noble, for its part, is an application-focused blockchain (also known as an “appchain”) focused primarily on facilitating the transfer of stablecoins between different blockchains via the Inter-Blockchain Communication (IBC) protocol. It acts as an intermediary between stablecoin issuers, including Circle, Hashnote Labs, Monerium, and Ondo Finance, to list their stablecoins on a growing number of Cosmos-based chains.
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