What is aUSD?
Last updated
Last updated
As Bitcoin continues its journey toward becoming the center of the DeFi ecosystem, one critical component has been missing: seamless access to stablecoin liquidity directly from Bitcoin wallets.
With the upcoming launch of BroSwap, Brotocol introduces aUSD, a fully-backed synthetic stablecoin designed to serve as the foundational base asset for BTC/USD trading—creating an immediate bridge between Bitcoin and the global stablecoin ecosystem.
aUSD is a synthetic stablecoin issued by Brotocol with a 1:1 backing from established stablecoins USDT and USDC.
The core value proposition of aUSD lies in its ability to create immediate stablecoin liquidity on Bitcoin without waiting for major stablecoin issuers to deploy natively.
This approach aligns perfectly with Brotocol's philosophy of bringing DeFi functionality to Bitcoin rather than forcing Bitcoin users to leave their preferred ecosystem.
Like its companion asset aBTC, which connects native Bitcoin with wrapped Bitcoin versions across chains, aUSD creates a standardized synthetic asset that connects to various stablecoins while maintaining Bitcoin as the home base.
aUSD maintains a full 1:1 backing with reserve assets held by institutional-grade custodians. The reserve structure includes:
USDT on Ethereum
USDT on BSC
USDC on Base
USDC on Arbitrum
These reserves are secured through multiple layers of protection:
Institutional-Grade Custody: Reserve assets are held by established custodians including Fireblocks and Cobo, utilizing advanced MPC wallet technology
Cross-Chain Integrity: When aUSD moves between chains, the token is burned on the source chain and minted on the destination chain, maintaining consistent total supply
Decentralized Validation: Bonbori, Brotocol's validator network, ensures secure cross-chain operations
When BroSwap launches, aUSD will serve as the critical base asset that enables immediate trading between Bitcoin and stablecoins without requiring Bitcoin users to leave their native environment. This approach delivers several key benefits:
Rather than waiting for stablecoin issuers to deploy natively on Bitcoin, aUSD provides day-one access to deep stablecoin liquidity. From launch, Bitcoin users will be able to trade BTC to and from aUSD directly from their Bitcoin wallets, with BroSwap's architecture connecting to established liquidity pools across multiple chains.
aUSD serves as the connectivity asset that enables fungible movement between stablecoin ecosystems. When a user swaps BTC for aUSD on BroSwap, the system can utilize liquidity from any of the supported reserve assets (USDT on Ethereum, USDC on Base, etc.) while abstracting away the complexity from the user.
By providing a reliable USD-pegged asset on Bitcoin from day one, aUSD creates a foundation for broader DeFi activities. Bitcoin users can maintain stablecoin exposure without leaving the Bitcoin ecosystem, enabling activities like:
Hedging BTC volatility
Trading between BTC and stable value
Maintaining purchasing power
Preparing for the broader arrival of DeFi on Bitcoin
While aUSD provides immediate stablecoin functionality on Bitcoin, Brotocol recognizes the importance of native stablecoin deployments. The upcoming launch of Tether's USDT on Bitcoin through Taproot assets represents a significant milestone for the ecosystem, and Brotocol has designed aUSD with this transition in mind.
When USDT launches on Bitcoin, Brotocol will immediately integrate it as an aUSD reserve asset. This approach provides several advantages:
Immediate Utility: Bitcoin USDT will instantly connect to Brotocol's cross-chain infrastructure
Enhanced Liquidity: USDT on Bitcoin will benefit from connection to existing liquidity pools
Seamless User Experience: Users can choose between aUSD and native USDT based on their preferences
Gradual Transition: As USDT on Bitcoin gains adoption, users can naturally shift between the assets
In the longer term, BroSwap plans to add direct BTC/USDT trading pairs, giving users the option to trade with either synthetic (aUSD) or native (USDT) stablecoins according to their preferences. This flexibility ensures that Bitcoin users maintain choice while benefiting from the deepest possible liquidity.
aUSD exemplifies Brotocol's core mission of bringing DeFi functionality to Bitcoin rather than forcing Bitcoin to adapt to existing DeFi paradigms. By creating a synthetic stablecoin that lives natively on Bitcoin while connecting to established stablecoin ecosystems, Brotocol enables Bitcoin users to access stable value without sacrificing sovereignty or security.
This approach complements Brotocol's other core products:
BroBridge: The cross-chain connectivity layer that facilitates aUSD's movement between ecosystems
BroSwap: The DEX that enables trading between BTC and aUSD (among other assets)
BroPay: The payment solution that allows non-Bitcoin users to interact with the Bitcoin ecosystem
Together, these products create a comprehensive infrastructure that positions Bitcoin at the center of the DeFi ecosystem rather than as a peripheral participant.
aUSD represents a critical bridge between Bitcoin and the broader stablecoin ecosystem—one that enables immediate functionality while paving the way for native solutions like USDT on Bitcoin. By providing Bitcoin users with day-one access to stablecoin liquidity without requiring them to leave their native environment, aUSD removes one of the major barriers that has historically limited Bitcoin's role in decentralized finance.
As the ecosystem evolves and native stablecoins like USDT arrive on Bitcoin, aUSD's role will adapt, continuing to serve as a connectivity layer that brings the best of DeFi to Bitcoin users. This flexible approach ensures that Bitcoin users can access stable value on their own terms, maintaining the security and sovereignty that drew them to Bitcoin in the first place.
In the coming "Bitcoin DeFi Summer," aUSD will play a foundational role in accelerating adoption and enabling new use cases—contributing to Brotocol's vision of a Bitcoin-centric financial ecosystem where "the Road to Bitcoin" leads to a more connected, efficient, and user-friendly experience for all.
This innovative asset exists across multiple chains, including Bitcoin (as the token "USD•BY•BROTOCOL" and the token "AUSD$"), providing users with a consistent and reliable USD-pegged asset regardless of which blockchain they're using.
Transparent Reserve Reporting: Up-to-date reserve figures are publicly available at
