On February 28, Cardano announced the deployment of the USDCx stablecoin framework in partnership with Circle to integrate the xReserve system, enabling 1:1 minting and redemption mechanisms. This move significantly enhances the US dollar-denominated liquidity on the Cardano chain, even though the total locked value (TVL) remains in a low range.
USDCx is not a native USDC token but a bridged token linked to Circle’s reserves. Users can mint or burn USDCx through cross-chain operations on Ethereum to redeem and transfer liquidity into decentralized trading applications. The first platforms to achieve real-time integration include Minswap, Liqwid, and SundaeSwap, providing practical scenarios for “Cardano stablecoin liquidity growth” and “USDCx cross-chain minting mechanisms.”
On-chain data shows that, so far, the market cap of Cardano stablecoins is approximately $34 million, with a TVL of about $137 million. The growth in stablecoin size contrasts with the low activity in DeFi, as DEX trading volume and network fees remain low, indicating that funds are mostly held in conservative dollar assets and have not yet entered large-scale lending or leverage strategies.
Industry analysts believe that prioritizing the development of “compliant stablecoin infrastructure” will help pave the way for payments, fund management, and institutional-grade DeFi applications. Historically, insufficient stablecoin depth limited Cardano’s ability to support dollar-denominated loans and real-world asset experiments. Now, under the themes of “Cardano DeFi ecosystem revival” and “how USDCx can improve on-chain settlement efficiency,” the network is choosing to first improve underlying liquidity rather than chase short-term gains. Whether TVL can rebound in the future will depend on whether stablecoin funds are converted into actual on-chain demand.
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