Elastos Launches BTC-Backed Stablecoin BTCD Targeting a New Financial Framework

Overview of Elastos’ New BTC-Backed Stablecoin

Elastos has introduced the Bitcoin Dollar (BTCD), a new stablecoin that is fully backed by Bitcoin tokens. This initiative is part of the company’s efforts to create a financial ecosystem that prioritizes Bitcoin as a centerpiece.

Key Points:

Elastos launched the Bitcoin Dollar (BTCD) on June 18, 2025.
The intention behind BTCD is to form a modern digital representation of the Bretton Woods system.
BTCD will function as a part of an expansive project related to bitcoin-driven decentralized finance (DeFi).

According to sources, stablecoins like BTCD are crucial in offering stability in a notoriously volatile cryptocurrency market, allowing users to maintain investments in digital assets without enduring excessive price fluctuations.

Notably, traditional stablecoins are usually pegged to fiat currencies like the US dollar and are often backed by highly liquid assets. In a different approach, BTCD is overcollateralized with Bitcoin to ensure its stability, with a recommended collateralization of 160% to 200%. Ahmed IJ, the head of marketing at Elastos, underlined this unique mechanism.

Functional Dynamics of BTCD:

Oracles will supply the BTC-USD rate consistently to stabilize the value.
If BTC collateral drops to 110% coverage, arbitrage opportunities encourage actions to maintain balance, such as repaying debts with discounted BTC.

This innovative model reflects Elastos’ vision of redefining classical monetary systems such as Bretton Woods but with Bitcoin at its core instead of gold. Stablecoins like BTCD are anticipated to play an essential role in diminishing the volatility traditionally associated with cryptocurrencies, aligning with the broader goal of solidifying Bitcoin’s role in the decentralized finance landscape.