Citrea, a Bitcoin Layer 2 solution, has launched ctUSD, a new stablecoin aimed at creating a native liquidity layer for the Bitcoin ecosystem. The stablecoin is issued by crypto payments firm MoonPay and built on M0's universal stablecoin platform, which is also used by MetaMask and Exodus.

ctUSD is a U.S. dollar-denominated stablecoin backed 1:1 by short-term U.S. Treasury bills and cash. The stablecoin is designed to be compliant with the forthcoming GENIUS Act guidelines and will be available to users in over 160 countries, excluding Canada, the EEA, and New York. The goal is to reduce liquidity fragmentation that often occurs with bridged tokens in Bitcoin DeFi.

By being natively issued on Citrea, the ecosystem aims to avoid the creation of multiple, incompatible bridged tokens that can create systemic risks. MoonPay's involvement allows for issuance and redemption through its U.S. Money Transmitter Licenses, with access via major payment methods like Visa, Mastercard, Apple Pay, and PayPal. Developer tools, including virtual bank accounts for fiat-to-ctUSD conversion, and integrations for cross-chain swaps and merchant payments are also part of the rollout.

This launch represents a significant step in the development of Bitcoin's DeFi landscape, leveraging established players like MoonPay and M0 to build a foundational liquidity layer. The project aims to provide a more unified and secure environment for decentralized applications on Bitcoin. The stablecoin's reserve structure, which mirrors traditional money market funds, is intended to provide stability and attract a broader range of users, including those from traditional finance.

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https://www.blog.citrea.xyz/introducing-citrea-usd-ctusd-the-native-stablecoin-for-bitcoin-issued-by-moonpay-and-powered-by-m0/