ZetaChain And BitSmiley Unveil bitUSD Stablecoin To Transform DeFi On Bitcoin

Published: September 10, 2024 at 8:00 am Updated: September 10, 2024 at 4:08 am

Edited and fact-checked:
September 10, 2024 at 8:00 am

In Brief

ZetaChain and bitSmiley are integrating Bitcoin liquidity into DeFi ecosystem with the upcoming launch of Bitcoin-backed stablecoin, bitUSD.

Layer 1 blockchain ZetaChain announced a partnership with BTC-native stablecoin protocol BitSmiley, to introduce the first stablecoin backed by Bitcoin, known as bitUSD. This integration aims to enhance liquidity within decentralized finance (DeFi) by enabling Bitcoin holders to leverage the value of their BTC across various blockchains and create new opportunities for DeFi applications on the Bitcoin network.

“Historically, using Bitcoin across DeFi has required wrapping it into tokens like WBTC, a process that involves intermediaries, new wallets, and added risks,” said Ankur Nandwani, Founder of ZetaChain, in a written statement. “This can create barriers for BTC holders wanting to get involved in DeFi. The launch of bitUSD on ZetaChain streamlines the process, allowing holders to mint stablecoins directly from their native BTC, which will boost liquidity and spur innovation in the entire DeFi ecosystem,” he added.

Scheduled for release in late September, bitUSD will facilitate the integration of native Bitcoin liquidity with assets across multiple blockchains. This functionality allows individuals to deposit their native BTC and mint bitUSD, thereby expanding their engagement opportunities throughout the blockchain ecosystem.

Additionally, the introduction of bitUSD on ZetaChain aims to enhance the user experience by simplifying access to DeFi activities. By minting bitUSD, Bitcoin holders will be able to leverage the value of their BTC for various DeFi activities that were previously challenging. These include lending bitUSD for yield on Ethereum, exchanging it for BNB on Binance Smart Chain, and exploring cross-chain DeFi opportunities.

ZetaChain Welcomes Animoca Brands As New Validator

ZetaChain operates as a foundational layer for the decentralized internet, offering a platform that ensures global accessibility, simplicity, and utility throughout various blockchains. Its Omnichain Smart Contracts, built on the Universal EVM, are designed for broad chain abstraction within the cryptocurrency ecosystem. ZetaChain’s capability to connect with any blockchain—from Ethereum and Cosmos to Bitcoin and beyond—facilitates unified liquidity, user experiences, as well as data management from a single platform.

Recently, ZetaChain unveiled that Animoca Brands, a company focused on enhancing digital property rights within gaming and the open metaverse, has joined its network as a validator. This partnership will allow Animoca Brands’ portfolio companies to benefit from access to over 3.5 million wallets on the ZetaChain network, among other advantages.

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About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

Alisa Davidson