Noble, a leading liquidity infrastructure provider in the Cosmos ecosystem, has partnered with M^0 to launch $USDN, a credibly neutral dollar stablecoin built on M^0’s decentralized stablecoin infrastructure.
This partnership focuses on solving liquidity challenges and enhancing interoperability within the Cosmos ecosystem.
Jelena Djuric, Co-founder of Noble, shared insights into this collaboration in an exclusive interview with Cryptonews, highlighting the integration of M^0’s $M as the backing asset for $USDN and its broader implications for the Cosmos ecosystem.
M^0 Integration Enhances Risk Management and Liquidity
In its first year, Noble processed over $5 billion in transaction volume and secured $532 million in total value locked (TVL), highlighting its pivotal role in the Cosmos ecosystem.
The integration of M^0’s $M as the backing asset for $USDN marks a key development in risk and liquidity management.
Djuric explained, “$USDN is powered by M^0, and in this context, the risk management for collateral and liquidity management is part of the M^0 framework, independent of Noble.”
She added, “In effect, Noble is whitelabeling $M for the Cosmos ecosystem and providing interchain functionality.”
By delegating critical risk and liquidity responsibilities to M^0, Noble enables $USDN to leverage a decentralized infrastructure while focusing on distribution and interoperability across app chains.
This model also streamlines operations, allowing Noble to scale its offerings without compromising security or liquidity.
Balancing Decentralization and Compliance with $USDN in Cosmos
One of the standout features of the M^0 infrastructure is its customizable attributes, including allow-lists and freeze/unfreeze capabilities.
However, these features raise questions about maintaining decentralization.
Djuric clarified, “$USDN is simply a representation of $M in Cosmos, much like assets such as USDC or DAI across networks. Noble is not the issuer but provides functionality to enhance $USDN’s feature set.”
This ensures $USDN aligns with the decentralization principles of the Cosmos ecosystem while allowing for regulatory compliance where necessary.
Although specific details about $USDN’s yield distribution mechanics are yet to be revealed, M^0’s modular platform supports the creation of additional stablecoins based on $M.
This capability fosters a diverse ecosystem of interoperable financial products, enhancing liquidity and use cases across Cosmos.
Discussing $USDN’s positioning amid this diversity, Djuric stated, “While we believe $USDN will be well-positioned, we’re excited to see other projects create customizable stablecoins and develop their brands.”
“Diversity in product use cases and liquidity is fundamentally healthy and strengthens the Cosmos ecosystem,” she added.
$USDN and Noble: Shaping Stablecoin Infrastructure in Cosmos
As the first stablecoin to leverage $M as its core building block, $USDN represents a milestone in the evolution of stablecoin infrastructure.
Noble’s proven track record and M^0’s modular infrastructure position $USDN as a leader in programmable, interoperable financial products.
Similarly, Noble has been at the forefront of fostering collaborations to expand stablecoin adoption within the Cosmos ecosystem.
In September, Noble partnered with on-chain fiat issuer Monerium to bring the EURe stablecoin to the Cosmos and Inter-Blockchain Communication Protocol (IBC) ecosystem.
The integration enabled EURe, the first authorized stablecoin in Europe, to be natively available on over ninety Cosmos blockchains and across the broader IBC ecosystem.
Now that Noble has facilitated billions in transaction volume in its first year, the latest integration of $M is set to amplify these achievements.
Djuric concluded that “Leveraging $M and the M^0 infrastructure into $USDN’s design is a game-changer for the cosmos ecosystem, enabling both deeper liquidity and broader interoperability across several ecosystems and applications.”
The post Noble Leverages $M to Launch $USDN, Strengthening Cosmos Stablecoin Ecosystem appeared first on Cryptonews.
