Blindex Launches Two New Stablecoins on The Rootstock Ecosystem

Blindex, a producer of multi-currency stablecoin algorithms, is also one of the latest protocol developers integrating its protocols with RSK by launching two algorithmic stablecoins to the ecosystem, $bGBP (Great British Pound) and $bXAU (gold).

By bringing smart contract functionality to the Bitcoin network, the Rootstock ecosystem has been attracting DeFi protocols to the network. The birth of Bitcoin DeFi is another motivation for more projects which are seeking to leverage Bitcoin’s network security and RSK’s functionality.

Blindex is Crafting Stablecoin Options

RSK is one of the world’s most secure smart contract platforms.

The platform is secured by Bitcoin’s hash power via merge-mining. The RSK network can scale up to 100 transactions per second without sacrificing decentralization. Also, by using probabilistic verification, it can reduce storage and bandwidth.

RIF, RSK Infrastructure Framework, is a suite of open and decentralized infrastructure protocols that allows faster, easier and scalable development of distributed applications (dApps) within the Bitcoin DeFi ecosystem.

Blindex’s purpose is to stabilize the fiat money circulating worldwide and the company sees merit in the Bitcoin DeFi for stablecoins.

As fiat currencies are volatile and subject to depreciation, it requires a different approach to the current system. The integration of Blindex protocols with the RSK platform is one of the crucial milestones to achieving that goal.

Stable in a Rough Market

Blindex’s approach aims to remove the inherent volatility of currency assets like the US dollar, British Pound, or Euro and the team can achieve that goal through non-currency asset tokenization.

“There’s no doubt the crypto space, especially DeFi, is still in its infancy, which means it has a lot of room to grow and evolve. We see new implementations, services, and experiences surfacing almost daily. These new financial services have more flexibility and interoperability and are much cheaper,” Omer Paz, the contributor at Blindex, said.

Two new algorithmic stablecoins that Blindex brings to the Rootstock ecosystem include bGBP, a stablecoin pegged to the British Pound, and bXAU, a stablecoin pegged to the value of 1 oz of gold.

bGBP is a British Pound based-stablecoin that has highly demanded liquid. It can be swapped at the market rate with other coins. In addition, users will also mint, swap, and stake their bGBP, or use them in either other DeFi platforms on RSK or other chains in the future.

The other one, bXAU, is the first-ever gold pegged stablecoin backed by BTC and ETH.

Gold is Never Out of Style

In the context of the global economic situation facing a risk of high inflation and instability due to conflicts, gold investment can not only act as a hedge against inflation and deflation but also as a good portfolio diversifier.

Moreover, gold is also a global store of value that provides financial cover during geopolitical and macroeconomic uncertainty. In short – there might be some good reasons to hold gold-linked assets over the next few years.

Gold pegged stablecoins are currently still few available in the DeFi market. Blindex’s bXAU is pegged to the gold price and BTC and ETH are also used as collateral to back that price.

“We see a lot of demand from crypto investors that want to diversify their portfolio by investing in gold. And now they can do it, in a fully decentralized manner,” according to Omer Paz.

Stablecoins are only the beginning for Blindex on the way to jumpstart a new breed of a global financial system. The team is also planning to add tools to help earn interest or borrow against assets.

In addition to currencies, the protocol developer is expecting to explore real-life assets for synthetics. All of these features will run on RSK and be implemented on Bitcoin’s DeFi ecosystem.