DUBAI, AE – 23/06/2025 – (SeaPRwire) – In a watershed moment for the evolution of decentralized finance, a groundbreaking financial instrument backed entirely by Bitcoin has emerged: the Bitcoin Dollar (BTCD). Officially launching today on the Elastos SmartWeb platform, BTCD represents a new breed of digital asset—one that fuses the monetary integrity of Bitcoin with the flexibility and programmability of stablecoins. In a world grappling with rising concerns over centralized banking systems and the opacity of fiat-backed assets, BTCD enters the arena as the first fully Bitcoin-collateralized stablecoin that operates natively within the Bitcoin ecosystem—without requiring wrapping, custodianship, or synthetic tokens.
The launch of BTCD is the culmination of years of research and development by a team of Harvard alumni, supported by incubation at the Harvard Innovation Labs. This novel stablecoin introduces a trust-minimized mechanism where users can lock their BTC into non-custodial, Pay-to-Witness-Script-Hash (P2WSH) addresses on the Bitcoin network. These locked assets serve as collateral to mint BTCD, with issuance governed and validated through zero-knowledge proofs computed by BTCD Miners. These miners, incentivized with small BTC transaction fees, interact with Ethereum-compatible smart contracts deployed on the Elastos SmartWeb infrastructure.
Unlike legacy stablecoin models that depend on centralized reserves, opaque audits, or external custodians, BTCD is transparently secured with on-chain, real-time proof-of-reserves. Collateral ratios range from 40% to 65%, with additional over-collateralization in Elastos’ native ELA token to support the arbitration and liquidation process. Importantly, BTCD’s liquidation mechanism avoids the pitfalls of passive or random liquidation. Instead, if borrowers fail to repay after the 90-day term, co-signed liquidation by trusted miners—who themselves have staked ELA as a guarantee—ensures systemic stability and protects participants from bad actors and collusion.
This infrastructure is powered by Elastos, a decentralized smart economy platform that has been merge-mined with Bitcoin since 2018. Elastos’ SmartWeb is underpinned by a hybrid consensus model that allows Bitcoin miners to simultaneously secure Elastos’ EVM-compatible blockchain while earning ELA rewards. With over 50% of Bitcoin’s global hash power—approximately 366 exahashes per second (EH/s), equating to $7.74 billion in annual computational effort—participating in Elastos merge-mining via pools such as Antpool, F2Pool, ViaBTC, and Binance Pool, the platform boasts unmatched security and decentralization.
BTCD marks a departure from the wrapped BTC model that has long dominated DeFi. By staying native to Bitcoin and operating on Bitcoin Layer 1, it opens the door to authentic Bitcoin-based DeFi without relying on bridges, custodians, or synthetic assets. In doing so, it fulfills a long-standing ambition: to make Bitcoin not just a store of value, but also a cornerstone of decentralized, functional finance. The project uses the robustness of Elastos’ SmartWeb to enable smart contracts, staking incentives, and cross-chain communication—all built on a foundation of Bitcoin security.
In terms of transparency and accountability, BTCD offers a suite of real-time dashboards that track collateral levels, liquidation events, and protocol fees. This visibility allows all stakeholders—from miners and borrowers to exchanges and regulators—to monitor the system’s health and performance. Furthermore, Certik, SlowMist, and Trail of Bits have conducted rigorous audits of BTCD’s architecture in June 2025, affirming the protocol’s resilience.
BTCD will initially launch in August 2025 on the Elastos ECO mainnet and PG Protocol Chain, both of which are EVM-compatible. The roadmap includes future integrations across additional networks, extending BTCD’s reach across the broader crypto economy. Governance and staking functions are handled through ELA and PGA tokens, creating layered incentive structures and enabling decentralized participation.
“Merge-mining was originally proposed by Satoshi Nakamoto as a way to give Bitcoin miners additional utility and income,” said Sunny, co-founder of Elastos. “We’ve now realized that vision by allowing Bitcoin to not just secure new chains but to also back stablecoins like BTCD—creating yield, transparency, and utility for the entire Bitcoin ecosystem.”
The parallels between BTCD and historical monetary systems are striking. Much like the Bretton Woods system once linked the U.S. dollar to gold, BTCD anchors its value directly to Bitcoin—often referred to as digital gold—thereby providing a modern, decentralized analog to traditional hard money systems. Importantly, BTCD’s design ensures that if miners fail to meet performance requirements, they are penalized via the forfeiture of staked ELA collateral. This built-in accountability promotes honest behavior while reinforcing trust throughout the protocol.
“BTCD empowers me to deploy my Bitcoin without giving up control,” said Jacob Li, Head of Operations at NBW. “It’s a way to unlock value for real-world use without compromising the principles of decentralization.”
As global finance marches toward tokenization, programmable assets, and decentralized infrastructure, BTCD positions itself as a foundational building block. By uniting the unmatched monetary strength of Bitcoin with Elastos’ decentralized technological stack, BTCD lays the groundwork for a programmable financial future that does not compromise on trust, security, or sovereignty.
Get Started Today:
- For press kits, protocol dashboards, and interviews, visit Elastos.net
- Wallets and exchanges interested in supporting BTCD can contact info@elastos.org
- Bitcoin holders can mint BTCD and explore the ecosystem at Elastos.net
About BTCD:
BTCD is the first fully Bitcoin-native stablecoin, governed by the Elastos SmartWeb and backed 1:1 with BTC collateral. Developed by a team of Harvard alumni and incubated at the Harvard Innovation Labs, BTCD offers a new model of decentralized liquidity and programmable monetary value.
source https://newsroom.seaprwire.com/technologies/btcd-debuts-as-the-first-bitcoin-native-stablecoin-pioneering-a-new-era-of-non-custodial-programmable-finance-on-elastos-merge-mined-network/