Frax Finance, the decentralized protocol that is the home to the seventh-largest stablecoin FRAX, has forged a significant partnership with asset issuance chain Noble to expand its footprint beyond Ethereum to the Cosmos ecosystem, which comprises about 80 blockchains.
The Frax token (FRAX), a crypto-collateralized stablecoin pegged to the U.S. dollar, and its staked version, sFRAX, will become native to the Cosmos ecosystem via Noble.
The expansion to the Cosmos ecosystem, an interoperability network, is expected to boost the adoption of FRAX and sFRAX in diverse applications, including trading, savings, payments and collateral, while offering Cosmos users a decentralized alternative to USDC, the world’s second-largest dollar-pegged cryptocurrency.
“Bringing native FRAX issuance to Cosmos has been a priority for some time, and we are thrilled to announce Noble as our issuance partner. We look forward to FRAX and sFRAX being available and are excited by the potential innovative use cases and incentives developed by us and our partners as well as by the broader community of Cosmos appchains and users,” Sam Kazemian, founder of Frax Finance, said.
Frax Finance is a full-fledged DeFi ecosystem offering stablecoins, liquidity staking on Ethereum, a layer 2 platform, and lending markets. Frax’s other tokens, Frax Price Index (FPI) and frxETH may be available on Cosmos at a later date.
Noble is a Cosmos application-specific blockchain designed to issue native digital assets in the Comos ecosystem. Circle’s USDC expanded to Cosmos via Noble in September 2023. At press time, Noble had a total circulating supply of over $195 million USDC, accounting for 0.6% of the total USDC supply across all blockchains.
Noble facilitates seamless integration of assets with major Cosmos chains, including Osmosis, dYdX, Celestia, Sei, Injective, and more. In the past four weeks, more than $2.5 billion worth of crypto assets have been transferred between Cosmos chains.
