Citrea, a Bitcoin-focused layer-2 network, has introduced a new US dollar stablecoin designed to improve liquidity across its ecosystem. The token aims to solve long-standing issues in Bitcoin-based decentralized finance.
The stablecoin is issued by MoonPay and is backed one-to-one by short-term US Treasury bills and cash. Citrea said issuing the token natively will reduce reliance on bridged stablecoins, which often create higher risk and trading inefficiencies.
Transactions on Citrea are settled back to Bitcoin using zero-knowledge proofs, allowing faster activity without compromising security. The stablecoin will be available in most US states and more than 160 countries worldwide.
MoonPay said the launch reflects a shift toward regulated stablecoins rather than outright bans. The token includes compliance features such as address freezing when required by law, aligning with anti-money laundering and consumer protection standards expected by institutions.
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