Kraken integrates the omnichain stablecoin USD₮₀, launched by Flare Network. This development provides a direct on/off ramp for users, which increases liquidity of stablecoins and access to those in the Flare ecosystem. A stable coin USD₮₀, backed 1:1 with USDT relying on LayerZero’s Omnichain Fungible Token (OFT) standard.
Kraken customers are now able to withdraw USDT off the exchange and receive USD₮₀ to Flare wallets without requiring the use of bridges or third-party marketplaces. This simplifies stablecoin transfers and improves user experience. Some of this is aligned with Flare’s goal of reducing technical friction in a Decentralized Finance (DeFi) environment.
Stablecoin TVL Surge and XRPfi Expansion
Following the launch of USD₮₀ on Flare, the network’s total value locked (TVL) spiked from roughly $60 million to above $130 million. USD₮₀, the ecosystem’s native or ‘elastic’ stablecoin, has already been minted over $69 million worth of USD₮₀, as demand is rising for interoperable, decentralized, fast, and secure stablecoins.
The availability of USD₮₀ is a critical step forward in Flare’s path towards building XRPfi and DeFi infrastructure for the XRP community. Liquidity provision, lending, and asset trading on Flare’s native platforms: SparkDEX, Kinetic, or Enosys are allowed while linked to the stablecoin. This reduces risk and the need for using wrapped tokens or fragmented liquidity via its native transfer mechanism.
Regulatory Notes and Ecosystem Developments
Despite USD₮₀ being available globally on Kraken, their users residing in the European Economic Area (EEA) may be restricted by local regulations. Nevertheless, the users can still use their decentralized exchanges on Flare. Flare has additionally stated that it will conduct an exclusive Reef airdrop to eligible Kraken users, with more details to come.
Flare’s partnership with Kraken bolsters the company’s standing within the decentralized finance landscape and signals a higher level of connection between blockchain networks.
