Circle Internet Group, Inc. (NYSE: CRCL) is announcing that Stacks is now connected to Circle xReserve. Via this latest integration, USDCx on Stacks is now available, offering a USDC-backed stablecoin to web3 developers and crypto users and enabling access to crosschain USDC liquidity.
As noted in a blog post by Circle, Stacks is now serving as a Layer 2 blockchain and liquidity layer for Bitcoin.
Stacks brings smart contracts and decentralized apps to Bitcoin.
It uses the Clarity programming language and “anchors its state to Bitcoin via Proof of Transfer (PoX), enabling applications like DeFi and NFTs while inheriting Bitcoin’s finality and network security.”
As explained in the update, USDCx is “a dollar-denominated stablecoin issued by Stacks, fully backed by USDC held in Circle xReserve.”
xReserve is a non-custodial smart contract and interoperability infrastructure that provides “deposit and minting attestations for USDCx on Stacks, enabling secure and verifiable asset issuance and crosschain transfers.”
xReserve works in tandem with Circle Gateway and Circle CCTP to make USDCx on Stacks interoperable “with USDC across supported blockchains, without reliance on third-party bridges.”
With the launch of USDCx on Stacks via Circle xReserve, developers and institutions can now “build Bitcoin-secured applications using an interoperable stablecoin.”
This reportedly unlocks several use cases:
- Lend and Borrow with Stable Liquidity: USDCx on Stacks provides a stable, trusted asset for lending markets, enabling multi-asset pools and protocol-level LP rewards.
- Non-Custodial Loans with Bitcoin as Collateral: Apps like Granite can now offer users USDCx on Stacks loans backed by Bitcoin without rehypothecation and with safer liquidation mechanisms.
- Stablecoin-Powered Trading and Swaps: Users can trade, swap, or provide liquidity using USDCx on Stacks, fueling more efficient and accessible DeFi.
USDCx is now supported by various digital wallets on Stacks such as Asigna, Fordefi, Leather and Xverse.
Day 1 partners are as follows:
- Bitflow
- Granite
- Leather
- Xverse
- Asigna
- Fordefi