From Yahoo Finance: 2025-06-18 12:03:00

A decentralized finance project introduced a stablecoin backed by bitcoin tokens to establish a financial system centered on cryptocurrency. Elastos launched its bitcoin dollar on Wednesday, aiming to replicate the Bretton Woods system with Bitcoin at its core. Stablecoins are pegged to traditional assets like the dollar to counter cryptocurrency volatility.

Dollar-pegged stablecoins are typically backed by short-term U.S. Treasuries to meet fluctuating demand. Elastos’ BTCD stablecoin is overcollateralized with 160%-200% of its value in bitcoin to maintain stability. Oracles update the BTC-USD rate each block to manage cover percentages and ensure the token’s stability.

The BTC-backed stablecoin is part of the broader development of bitcoin-powered DeFi, leveraging the Bitcoin network’s security and reserves to fund decentralized activities. Stablecoin market projections indicate growth potential to $2 trillion by the end of 2028, according to Standard Chartered’s analysis.



Read more at Yahoo Finance: Bitcoin DeFi Project Elastos Debuts BTC-Backed Stablecoin BTCD