TLDR
- Citrea has launched a U.S. dollar-pegged stablecoin called ctUSD to enhance liquidity in its Bitcoin ecosystem.
- The ctUSD token is fully backed 1:1 by short-term U.S. Treasury bills and cash.
- Citrea aims to reduce liquidity fragmentation that commonly occurs with bridged dollar-pegged tokens in Bitcoin DeFi.
- MoonPay is the issuer of ctUSD and is expanding its stablecoin issuance services with Citrea as the first adopter.
- The stablecoin is available in 49 U.S. states and over 160 countries outside the European Economic Area and Canada.
Citrea has launched a new U.S. dollar-pegged stablecoin, Citrea USD (ctUSD), designed to enhance liquidity in its Bitcoin-focused ecosystem. The stablecoin is issued by Moonpay, a leading crypto payment infrastructure developer. This stablecoin aims to reduce liquidity fragmentation and address the challenges Bitcoin-based decentralized finance (DeFi) platforms face.
Stablecoin Backed by U.S. Treasury Bills
Citrea’s ctUSD token is fully backed 1:1 by short-term U.S. Treasury bills and cash. This ensures its stability and makes it a reliable asset within Citrea’s ecosystem. The token’s backing by U.S. Treasuries is meant to strengthen its position as a trusted and regulated digital asset.
Orkun Mahir Kilic, CEO of Chainway Labs, the company behind Citrea, explained that ctUSD is natively issued on the Citrea network. “There are no bridged versions to fracture liquidity; there is only one canonical asset,” Kilic said. This approach eliminates the fragmentation issues that typically arise when assets are bridged between different blockchain networks.
Citrea aims to streamline liquidity within the Bitcoin ecosystem, a space where capital is often split across bridged dollar-pegged tokens. By issuing ctUSD natively, Citrea aims to create a more cohesive and reliable liquidity pool, reducing slippage and improving the overall efficiency of Bitcoin-based DeFi activities.
Citrea Adopts MoonPay’s Stablecoin for Bitcoin Ecosystem
The launch of ctUSD also marks a major step in MoonPay’s push into stablecoin issuance. The company introduced its stablecoin launchpad in late 2025, positioning Citrea as the first network to adopt this technology. The ctUSD token is expected to be accessible in 49 U.S. states, excluding New York, as well as more than 160 countries outside the European Economic Area and Canada.
MoonPay’s compliance framework ensures that ctUSD adheres to regulations. Kilic highlighted the growing shift in regulatory attitudes towards stablecoins, noting that “the narrative in Washington is shifting from ‘ban it’ to ‘regulate it’.” This regulatory shift supports the demand for stablecoins that comply with anti-money laundering and consumer protection standards, which are becoming increasingly important for institutions entering the crypto market.
By aligning with compliance regulations, MoonPay offers a trusted framework for stablecoin issuance. This framework allows for the freezing or blacklisting of addresses when required by law, ensuring the stability and security of the network.
The introduction of ctUSD within Citrea’s ecosystem highlights the ongoing shift towards regulated digital currencies. It is designed to serve as a liquidity standard, offering a reliable and compliant digital dollar for Bitcoin DeFi applications.
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