BTC Builders XI: Why Stables Will Live on Bitcoin

BTC Builders XI: Why Stables Will Live on Bitcoin

In this weekly Bitcoin Builders newsletter, we update you on the latest ways to do and earn more with your Bitcoin. Read more for the latest news from the Bitcoin universe and Arch community.

Roadmap

  1. This Week's Headlines
  2. Arch Updates
  3. One Big Thought
  4. Quick Hits: Read + Watch

đź’° $1.3M Bitcoin by 2035? Bitwise projects Bitcoin price to trade near $1.3 million by 2035, citing institutional demand, scarce supply, and macroeconomic pressures.

⛏️ Trump-Backed miner group eyes NASDAQ debut. CoinDesk reports that Miner American, which is 20% owned by Eric and Donald Trump Jr., plans to list on the Nasdaq in September. It recently raised $220M to expand its Bitcoin holdings and infra.

🇭🇰 Thousands gather in Hong Kong for Bitcoin Asia. The second annual Asia rendition of the major Bitcoin gathering positions the city as a crypto hub, even as it also tries to balance risk, CoinTelegraph reports.

Arch Network v0.5.6 is officially live!

The arch-cli now makes APL token workflows feel effortless—minting, accounts, delegation, multisig, the works—backed by fresh walkthroughs and a one-command demo. Under the hood, Resharing V2 arrives with on-chain transcripts powered by a new crypto crate. The validator also got a deep clean: modular snapshot verification and a clearer state machine make nodes sturdier and debugging smoother.

We’ve reorganized the codebase to keep things racing forward: new splits like dkg, websocket, bitcoin-internal, structs, testing_suite, and stakes help us move faster with fewer side effects. CI/nightlies are smarter, program IDs are now Base58 and human-readable, and RPCs are more consistent (hello, get_version). Upgrading? Just update any hardcoded IDs and switch to get_version. Full details are in the release notes and compare link.

Read more in the Release Notes.

Join the Arch community hub on Circle.

BTC Will Be the Home for Stables

The Demand for Dollarized Crypto

Stablecoins have quietly become the lifeblood of the crypto economy. Today, more than $290 billion in stablecoins circulate across blockchains, powering everything from trading pairs to remittances to on-chain savings accounts.

Users want the familiarity and stability of dollars without leaving the crypto ecosystem, and businesses—from exchanges to payment apps—need that liquidity layer to function. The question is no longer whether stablecoins will be foundational to crypto, but where they will ultimately settle.

And, increasingly, the answer points back to Bitcoin.


Bitcoin: The Deepest Liquidity Pool

Bitcoin remains the largest, most secure, and most liquid asset in crypto, with a $2.3T+ market cap that exceeds the combined value of all other digital assets. Stablecoins thrive where there is demand and capital flow.

Just as U.S. Treasuries backstop global finance, Bitcoin provides the ultimate settlement layer for digital money. Building stablecoins directly on Bitcoin connects them to the deepest pool of liquidity in the crypto economy, reducing dependence on smaller, more fragile ecosystems.


Security and Trust Minimization

Stablecoins carry inherent risk—issuers, custodians, and blockchains can all fail. That’s why minimizing trust assumptions is critical. Bitcoin’s proof-of-work consensus, unmatched decentralization, and track record of resilience make it the most secure chain to anchor digital dollars. Every year that Bitcoin survives and hardens, it increases the credibility of stablecoins that can be issued and transacted natively on it.

By contrast, stablecoins on smaller L1s or bridges add additional points of failure: smart contract risk, validator cartels, or bridge exploits. Bitcoin-native stablecoins avoid those risks by settling where trust assumptions are fewest.


Infrastructure Finally Catches Up

Historically, Bitcoin lacked the programmability to host stablecoins directly. That’s why the first generation of dollar tokens (USDT, USDC) blossomed on Ethereum and then spread to Solana, Tron, and others. But the landscape has changed.

The arrival of Arch changes that, unlocking the ability to more seamlessly issue, transact, and settle stablecoins on Bitcoin.

Advanced signature schemes, like Arch's FROST + ROAST model, and data-availability improvements further enable Bitcoin-native financial contracts, including stablecoins, with the same speed and user experience people expect elsewhere.


Geopolitical Neutrality

Stablecoins are not just a crypto convenience. They are increasingly a geopolitical instrument. Emerging markets use them to escape inflation, and financial institutions eye them as settlement rails.

If the world is going to rely on stablecoins, they need to live on the most neutral and credibly decentralized chain. Bitcoin, with no foundation controlling its upgrades and no single country dominating its governance, is uniquely positioned to be that neutral base.


The Path Forward

Stablecoins will exist everywhere, but their center of gravity is shifting toward Bitcoin:

  • Liquidity gravity: The largest asset in crypto is the natural home for its monetary layer.
  • Security gravity: The most resilient chain reduces systemic risk.
  • Credibility gravity: Global markets will trust stablecoins most when they are rooted in Bitcoin’s neutrality.

As new Bitcoin-native infrastructures go live, expect stablecoin adoption to accelerate—transforming Bitcoin from “digital gold” into the ultimate settlement layer for the world’s digital dollars.

đź“– Read

https://cointelegraph.com/news/bitcoin-2025-defi-traditional-finance

The BTC DeFi Surge: Arch Releases Landmark Survey of 125+ Top Builders
The Bitcoin economy is experiencing a seismic shift, rapidly transitioning from the world’s hardest currency to its most powerful programmable asset. That’s the takeaway from a landmark Arch survey of 125 builders, investors, and users leading an explosion in Bitcoin DeFi, which shows a surge from $304 million to more
Bitcoin DeFi Network Arch Finds VC Backer for Early-Stage Projects
Arch Network is working with DPI Capital to write first checks for “pillar” protocols building on the Bitcoin DeFi project.

4 Pillars, one of the top research firms in South Korea, broke down the Arch opportunity for unlocking Bitcoin in this deep-dive analysis.

📺 Watch