Bitcoin Is Getting Native, Dollar-Backed Stablecoin USDB

Bitcoin is heralded as the world’s hardest money, but the network lacks one of the most foundational financial tools: a native, dollar-denominated stablecoin. While other native Bitcoin stablecoins already exist, they are backed by Bitcoin, not dollars.

That’s changing today with the announcement of USDB, a new stablecoin that aims to bring a regulated, U.S. dollar-backed asset directly to Bitcoin’s base layer.

Created by decentralized exchange Flashnet, USDB will be issued on Bitcoin layer-2 network Spark by Brale, a U.S.-licensed financial entity, and is backed entirely by Treasury bills. It is launching in collaboration with NFT marketplace Magic Eden, and is designed to bring dollar liquidity to Bitcoin without needing wrapped assets, synthetic structures, or bridges.

Although Bitcoin holds trillions of dollars in value, developers and users have typically relied on other blockchains like Ethereum and Solana for stablecoin functionality. That has pulled liquidity away from Bitcoin, forcing traders and apps to operate outside its ecosystem. USDB is designed to change that.

“It’s the first fiat-backed stablecoin on Bitcoin. Just like [USDC], or Tether, or any other big stable,” Ethan Marcus, CEO and founder of Flashnet told Decrypt. “Other Stablecoins on Bitcoin until today have been wrapped versions of the fiat backed assets, or synthetic assets with invisible risks.”

What USDB enables

USDB introduces a new set of financial building blocks for the Bitcoin ecosystem, Flashnet says, bringing familiar functionality from other chains in a fully native format.

For traders, USDB enables the creation of native BTC-stable pairs for the first time, removing the need for custodial bridges or off-chain settlement layers. It allows Bitcoin to be traded directly against a stable unit of account.

Institutions will be able to hedge exposure and manage on-chain treasuries denominated in dollars without shifting assets off the Bitcoin network. This simplifies risk management while retaining the security and transparency of Bitcoin’s base layer.

For developers and builders, USDB offers a reliable, dollar-denominated financial primitive to build with. It brings predictable infrastructure for payments, trading, and application logic, allowing builders to plug into fiat-anchored rails while staying fully native to Bitcoin.

“It gives users clear pricing. No one prices anything in BTC,” Marcus added. “Users can now quote and trade with their USDB, and save in BTC.”

Magic Eden integration 

In a move to ensure immediate market utility, USDB will launch later this summer via Magic Eden, Bitcoin’s largest NFT and DeFi marketplace. The stablecoin will be integrated across Magic Eden’s mobile and dapp interface, with fiat-to-BTC on-ramps powered by USDB.

BTC-USDB liquidity pools will also go live, giving users the ability to swap between BTC and dollars directly on Bitcoin layer-1 without relying on external bridges. These pools will also create a native Bitcoin yield opportunity for liquidity providers.

“Magic Eden has one of the best brands in Bitcoin DeFi, as well as incredible reach in the ecosystem,” said Marcus. “They’re a no-brainer partner to get the flywheel spinning fast.”

“We’re excited to bet on Bitcoin DeFi,” Chris Akhavan, Chief Business Officer of Magic Eden told Decrypt. “USDB being built natively on Bitcoin will enable frictionless DeFi primitives and create endless opportunities for builders on the mother of all chains.”

For Flashnet and its partners, USDB represents more than just another stablecoin launch. It’s a first step towards building a truly native financial system on Bitcoin—one that combines the network’s uncompromising monetary foundation with the everyday practicality of dollars.

Edited by Andrew Hayward