Citrea launches Bitcoin ZK-rollup mainnet with cBTC and ctUSD for on-chain trading and lending
Citrea launched its mainnet on Jan. 27, debuting a Bitcoin-native ZK-rollup application layer designed to enable on-chain trading, lending and settlement anchored to BTC. Key components at launch include cBTC — a Bitcoin-backed asset using zero-knowledge proofs and BitVM-style verification to minimise custodian trust — and ctUSD, a Bitcoin-native stablecoin issued by MoonPay on M0’s open stablecoin infrastructure. Citrea claims fraud attempts can be challenged on Bitcoin mainnet if at least one honest party exists, aiming for stronger security than earlier bridge models. The network launched with more than 30 Bitcoin-secured applications (DEXs, liquidity tools, early lending and privacy services) and a user dashboard to manage assets and activity. ctUSD is available in the US (excluding New York) and 160+ countries and targets institutional compliance. Citrea says future priorities include growing BTC-denominated financial activity and increasing miner incentives via higher on-chain usage. Traders should note the introduction of Bitcoin-native liquidity (cBTC/ctUSD), early DEX and lending activity, and potential increases in on-chain transaction volume tied to mainnet adoption.
Bullish
The launch is broadly bullish for BTC and Bitcoin-native DeFi because it introduces native on-chain liquidity (cBTC and ctUSD), infrastructure for DEXs and lending, and a security model that reduces custodian trust. These factors can increase on-chain transaction volume, deepen liquidity, and attract institutional users via ctUSD’s compliance orientation. In the short term, expect interest-driven flows — higher trading volume on Citrea DEXs and demand for cBTC/ctUSD — which can translate to positive BTC sentiment and widened on-chain activity. Volatility may rise as traders test liquidity and yield products. In the medium to long term, if Citrea gains sustained adoption and its security/challenge mechanisms prove robust, it could materially expand BTC-denominated financial activity and miner fee revenue, supporting a bullish structural case for Bitcoin. Risks that could limit impact include low adoption, security exploits, regulatory hurdles for ctUSD or issuers, and interoperability frictions; similar past events (e.g., strong early optimism around Ethereum L2 launches) showed initial price/volume boosts that faded when user retention or liquidity proved limited. Overall, the mainnet release increases upside for BTC and Bitcoin DeFi but depends on real usage and regulatory clarity.