TL;DR
- Noble, a Cosmos-based blockchain, launches USDN, a stablecoin backed by M^0’s decentralized infrastructure, focusing on security and interoperability.
- This blockchain acts as an intermediary in Cosmos, connecting over 50 chains and facilitating the transfer of stablecoins like USDC through the IBC protocol.
- M^0 distributes the yields from its backing assets among approved distributors, promoting a transparent and decentralized model for stablecoin issuance.
The Cosmos-based Noble blockchain has launched USDN, a new dollar-denominated stablecoin that utilizes M^0’s decentralized infrastructure. This launch marks a milestone for both the blockchain and M^0, a startup aiming to revolutionize stablecoin issuance through an innovative Ethereum-based approach. M^0’s project offers an extension engine that allows developers to customize the $M stablecoin with features such as branding, compliance tools, and yield distribution.
Noble’s Role in the Cosmos Ecosystem
Noble’s new stablecoin leverages this engine to integrate with Cosmos, an ecosystem comprising over 50 interconnected chains via the Inter-Blockchain Communication (IBC) protocol. The blockchain acts as an intermediary between stablecoin issuers like Circle and Monerium, facilitating asset transfers across chains and enhancing interoperability within the ecosystem. Since its inception, Noble has handled transactions exceeding $5 billion, solidifying its role as a crucial component of Cosmos.
The M^0 Model
M^0’s model stands out for its decentralized approach to stablecoin issuance. Unlike major players like USDT and USDC, whose yields benefit only their issuers, the M^0 protocol distributes earnings generated from U.S. Treasury bonds—backing its stablecoin—among approved distributors. This structure not only fosters transparency but also incentivizes active market participation.
USDN’s integration with $M as its core will bolster the adoption of Cosmos-native stablecoins while setting an innovative standard for design, security, and functionality. According to Jelena Djuric, CEO of Noble, this collaboration will drive stablecoin usage within the DeFi market.
This alliance is expected to accelerate the evolution of new stablecoin designs, expanding the sector’s offerings with innovative tools tailored to diverse use cases and client needs
