Codex Public Chain Introduces Native USDC Minting: Pioneering a New Era for Stablecoins

Recently, an emerging stablecoin public chain announced the official launch of the USDC native minting function on its platform, becoming the "youngest" public chain in the history of cryptocurrency to implement this feature. This public chain had previously completed a $15.8 million seed funding round, receiving support from several well-known institutions.

This initiative has sparked widespread discussion within the industry regarding the development prospects of stablecoins. Traditional blockchain infrastructure has limitations in certain aspects of stablecoin development, particularly in maintaining monetary uniformity. An ideal currency should possess uniformity, meaning that regardless of its form, storage location, or issuing entity, its value should remain consistent. However, in reality, stablecoins with the same nominal value may exhibit value differences in different scenarios.

The reasons for this discrepancy include:

1. Different compliance and custody risks are faced in the issuance of stablecoins across various deposit and withdrawal channels.
2. The probability of issues encountered when transferring stablecoins through different channels varies.
3. The exchange cost between cryptocurrencies and local fiat currencies is high.
4. On-chain foreign exchange trading faces issues such as insufficient liquidity and unstable quotes.

Currently, the blockchain ecosystem is underinvested in solving these issues, leading issuers to spend a significant amount of time and resources to establish the necessary infrastructure. Recent reports have indicated that some large retailers are considering issuing their own stablecoin, but they may soon realize the complexity of this process.

Emerging public chain projects are working to solve these issues. They are obtaining relevant licenses, establishing banking relationships, accessing fiat currency exchange services, and applying the latest research results in blockchain technology to achieve the following goals:

1. T+0 wholesale foreign exchange trading
2. Frictionless atomic-level withdrawal channel
3. Low-risk fiat delivery

These innovations may include:

• Provide an institutional-grade on-chain trading platform that supports instant settlement and wholesale pricing between various fiat currencies and stablecoins.
• Conduct mandatory compliance checks during the execution of trades to enhance the reliability and security of transactions.
• Ensure the security and efficiency of off-chain transactions through the validator mechanism and penalty rules.

These efforts are expected to open new avenues for the development of stablecoins and provide users with a safer and more efficient trading experience. As these innovative technologies mature and are applied, we may witness significant changes in the stablecoin ecosystem.