Citrea Launches Mainnet, Enabling Bitcoin for Loans and USD Settlements

Citrea Unveils Mainnet for Bitcoin Financial Integration

In a groundbreaking move for the cryptocurrency landscape, Citrea, a Bitcoin application platform backed by Founders Fund and Galaxy Ventures, has officially launched its mainnet. This significant development enables Bitcoin to be used for a variety of financial activities, including loans, exchanges, and settlements in USD. The launch underscores Citrea's commitment to enhancing the financial utility of Bitcoin, bridging the world of traditional finance with the innovative prospects of decentralized finance.

The institutionally backed financial tools introduced by Citrea are set to transform how Bitcoin interacts within the global financial markets. Leveraging this new infrastructure, users can now engage in capital market activities directly on the Bitcoin network. A key component of this launch is the introduction of ctUSD, a stablecoin pegged to the US dollar, which has been developed in collaboration with MoonPay and is designed to facilitate seamless transactions within the Bitcoin ecosystem.

One of the challenges currently facing the Bitcoin market is the substantial amount of Bitcoin that remains inactive; approximately 61% of BTC has not moved in over a year. This has hindered the potential for Bitcoin to fulfill its role as a major financial asset. "The Bitcoin network is the world's most significant digital asset, yet its financial applications have been limited," said Orkun Kilic, co-founder and CEO of Chainway Labs, the firm responsible for developing Citrea. "By launching a suite of financial applications directly on-chain, Citrea is reshaping how capital can be deployed, managed, and settled within the Bitcoin ecosystem."

At its core, the Citrea platform's primary aim is to facilitate on-chain financial products secured by Bitcoin, thereby allowing institutions and users to interact more directly and efficiently with the cryptocurrency. This includes offerings such as Bitcoin-backed loans and institutional credit, which are now streamlined through Citrea's mainnet.

To build its lending infrastructure, Citrea has collaborated with leading participants in the decentralized finance landscape, such as Morpho and UltraYield from Edge Capital. These strategic partnerships will allow Citrea to offer safe and transparent returns on Bitcoin holdings, tapping into both on-chain and off-chain strategies from major digital asset institutions like Keyrock.

Bridget Harris, a partner at Founders Fund, noted, "Citrea is addressing a formidable business opportunity by helping to make Bitcoin truly programmable, a characteristic that has historically been lacking in a scalable manner. By developing developer- and user-oriented products that leverage Bitcoin’s security, Citrea fundamentally alters the economic system surrounding Bitcoin."

Additionally, Will Nuelle from Galaxy Ventures emphasized that Citrea broadens the depth of engagement with Bitcoin by integrating capital markets, stablecoin liquidity, and application infrastructure directly on the Bitcoin network. "This advancement will enhance Bitcoin's role in global financial systems and will provide institutions and users with secure methods of building upon the network," Nuelle explained.

The implications of Citrea's approach are significant for long-term demand and miner incentives, as well as the ways institutions interact with Bitcoin. With Citrea enabling institutions to adopt more capital-efficient strategies, users gain increased control and flexibility compared to traditional off-chain solutions. With diminishing block subsidies over time, Citrea aligns the network's security with real economic usage.

Now that the Citrea mainnet and ctUSD are online, users can explore these new opportunities. For more information, you can visit citrea.xyz.

About Citrea

Citrea serves as a vital application layer for Bitcoin, empowering both institutions and individual users to access Bitcoin's financial markets. The platform aims to broaden the financial utility of Bitcoin while remaining anchored in the network's security model. Citrea has secured investment from notable names, including Founders Fund, Galaxy, Maven 11, Delphi Digital, and others.