Citrea’s ctUSD stablecoin targets liquidity gaps on Bitcoin

[etfs]

A core component of Citrea’s launch is ctUSD, a stablecoin issued by MoonPay and backed 1:1 by cash and short-term U.S. Treasurys. Unlike wrapped stablecoins, ctUSD is natively issued on Citrea’s rollup rather than bridged from another chain.

Citrea says this design avoids bridge-related security risks and prevents liquidity fragmentation by making ctUSD the primary stablecoin for its ecosystem. The stablecoin is integrated with MoonPay’s regulated banking infrastructure, allowing users to convert fiat into ctUSD via traditional wire rails.

The launch has drawn praise as an experiment in generating new block space demand, though critics argue Citrea’s reliance on a single sequencer and offchain components shifts — rather than eliminates — trust assumptions in Bitcoin-based finance.

[tradelikepro]

bitcoiners arguing about block space again, nature is healing.