Decentralized exchange aggregator 1inch has reportedly formed an alliance with the ICHI platform, to jointly work on the issuance of a new stablecoin pegged to the U.S. dollar.

Specifically revealed on July 1st, 1inch reportedly shared that it is looking to carry out the mint process of a stablecoin “with a blend” of its native 1INCH token and USD Coin (USDC), with the assistance of ICHI’s Decentralized Monetary Authority (DMA). 

The new one1INCH stablecoin – every ICHI-based issuer needs to start with the prefix “one” – in reference to its Japanese namesake – reportedly has a primary goal of making a medium of exchange available, to finalize payment for operating expenses, offer liquidity, and distribute liquidity rewards.

“The one1INCH stablecoin can grow into an economic game changer. At scale, its treasury can drive value back to 1inch DeFi operations because it is minted and over-collateralized with 1INCH tokens.” 1inch co-founder Sergej Kunz reportedly remarked. 

Rolled out in May, ICHI’s DMA reportedly makes it possible for initiatives to build and govern their own fully-collateralized stablecoins – in this scenario, involving 1inch’s native 1INCH token and USDC – which is up for minting and redeeming with a set value of $1.

The 1inch Foundation – the non-profit division of 1inch – and ICHI have individually sent $100,000 in tokens as contribution for collateral for the stablecoins, enabling the minting process of the one1INCH tokens at a 80-20% ratio of USDC and 1INCH.

ICHI’s DMA could reportedly result in a surge regarding the sum of U.S.-dollar pegged tokens, as initiatives are in the search for different options beyond traditional stablecoins.