Noble, an asset issuance chain, and Frax Finance, a decentralized protocol that houses the seventh-largest stablecoin FRAX, have forged a major alliance. Through this partnership, Frax hopes to become more widely known outside of Ethereum and throughout the Cosmos ecosystem, which consists of about 80 different blockchains.
Both the FRAX token and its staked form, sFRAX, will naturally become part of the Cosmos ecosystem thanks to Noble.
The usage of FRAX and sFRAX in a variety of applications, including trading, savings, payments, and collateralization, is anticipated to increase with the switch to Cosmos, which is renowned for its interoperability network. Additionally, this extension offers users of Cosmos a decentralized substitute for USDC, the second-biggest dollar-pegged cryptocurrencycurrency globally.
Frax Finance’s founder, Sam Kazemian, expressed excitement about the collaboration and emphasized the long-term objective of enabling native FRAX issuance on Cosmos.
Frax Finance, well-known for its extensive DeFi ecosystem that includes loan markets on Ethereum, layer 2 solutions, stablecoins, and liquidity staking, plans to investigate other tokens in the future, including Frax Price Index (FPI) and frxETH on Cosmos.
Within the Cosmos network, Noble functions as a specialized blockchain that makes it easier to issue native digital assets. Interestingly, Noble had already approved Circle’s USDC extension into Cosmos in September 2023, accumulating more USDC than $195 million in circulation—that is, 0.6% of the USDC supply overall.
