Where are we with non-USD stablecoins today?

Immense uncertainty is ingrained into today’s global crypto currency market, making stability hard to come by. With the global crypto market cap losing $2 Trillion in value over the past year, investors are left apprehensive. While the future is trending towards decentralized finance (“DeFi”), reliability needs to be at the frontlines. This is where stablecoins come into play. 

The type of stablecoins that have stood the test of volatile times are always fiat-backed. The advantage of having an actual asset backing the coin and the stability linked to knowing that the peg will remain the same, holds great importance throughout the DeFi ecosystem.

Today, almost all stablecoins are pegged solely to the United States dollar, which leaves behind and gives no representation for other foreign currencies. Working with stablecoin issuers in foreign countries and their local crypto on-ramps will be necessary to onboard the world into DeFi. There is immense potential for foreign stablecoins to be adopted more broadly and we can validate this with Circle announcing their new EURO Coin (“EUROC”). This is where DFX Finance comes in to continue paving the path forward.

What is DFX?

DFX Finance is a decentralized foreign exchange (“FX”) protocol optimized for trading fiat-backed foreign stablecoins, (CADC, EUROC, XSGD, etc.). You can use the DFX protocol and its contracts to provide true financial localization for the customers of your global business or just safely earn yield on your stablecoins. The next generation of global finance cannot rely solely on USD-pegged stablecoins. A decentralized protocol where users can swap non-USD stablecoins pegged to various foreign currencies is not only important, but necessary. DFX is building stablecoins for the world.

DFXs automated market maker (“AMM”) on Ethereum & Polygon allows the decentralized exchange of stablecoins according to a dynamically adjustable bonding curve that takes real world FX price feeds from Chainlink. This ensures that you get the best rate possible for your swap. DFX aims and continues to create partnerships with stablecoin issuers around the world and help them bootstrap the usage of their stablecoins to the world.

Expanding the ecosystem


Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

There is an initiative to create an ecosystem for non-USD stablecoins to thrive and provide value to their users all over the world, no matter where they are. We have pushed out many products & integrations centered around stablecoins that we offer, and we continue to build new ones that cater to all walks of life within DeFi.

Some of those products/integrations include:

  • AMM optimized for efficient swaps
  • Lending / Borrowing Markets
  • Vote Escrow & Gauges
  • Pay Bills directly with Stablecoins
  • Fiat-backed fractionalized Stablecoins (dfxCAD, dfxEUR, dfxSGD)

These are only a few examples of what we have/are bringing to the world with so much more behind the scenes that we can't wait to share. Thank you for taking the time to read and have a wonderful day.

DFX Finance Website: https://dfx.finance/

DFX Dapp: https://app.dfx.finance/

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.