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M^0, a decentralized infrastructure layer for stablecoins, has announced its partnership with Noble, an asset issuance chain in the Cosmos ecosystem, to launch the Noble Dollar ($USDN) – a dollar stablecoin that programmatically directs yield to distribution partners onchain, the company announced in a statement on Thursday.
This move positions M^0 to compete in the growing stablecoin market, leveraging its modular design and interoperability to carve out a niche in an ecosystem ripe for innovation.
Blockhead
The collaboration introduces $USDN as the first digital dollar built on M^0’s stablecoin framework, with a focus on programmability, liquidity, and cross-chain compatibility. $USDN aims to address the Cosmos ecosystem’s need for native stablecoin solutions, using M^0’s $M as a foundational asset. The company cited swaps, payments and lending as use cases for $USDN.
Unlike dominant stablecoins such as Tether (USDT) and Circle’s USDC, $USDN will be deeply integrated into Cosmos’ Inter-Blockchain Communication (IBC) framework. This integration, coupled with the upcoming IBC Eureka upgrade, promises enhanced interoperability not only within Cosmos but also with Ethereum Virtual Machine (EVM) networks, the announcement said.
“Leveraging $M and the M^0 infrastructure into $USDN's design is a game-changer for the ecosystem, enabling both deeper liquidity and broader interoperability across several ecosystems and applications,” said Jelena Djuric, co-founder and CEO of Noble. “This collaboration not only advances Cosmos-native stablecoin adoption but sets a new precedent for stablecoin design by focusing on safety, programmability, and interoperability.”
M^0’s newly launched stablecoin extension engine allows builders to customize their stablecoins, tailoring features like branding, compliance measures, and yield mechanisms. This modular approach contrasts with traditional stablecoin issuers, which often operate within siloed ecosystems. While current incumbents maintain significant market share, their infrastructure often lacks the programmability and cross-chain flexibility demanded by newer blockchain applications.
By embedding $M into $USDN’s design, M^0 and Noble aim to establish a robust alternative within Cosmos, addressing key gaps in liquidity and usability. Noble’s track record—facilitating $5 billion in transaction volume within a year and maintaining over $500 million in total value locked (TVL)—provides a strong foundation for $USDN’s growth.
As DeFi ecosystems continue to evolve, $USDN could become a blueprint for modular stablecoin solutions that prioritize flexibility and shared liquidity across multiple blockchains.
