Citrea Mainnet Launch Brings DeFi to Bitcoin

What Led to This Launch

Chainway Labs built Citrea to solve Bitcoin’s long-standing programmability gap. While Bitcoin offers unmatched security and monetary credibility, it does not support complex financial applications on the base layer. Therefore, Chainway Labs focused on building an execution layer that brings DeFi functionality to Bitcoin without compromising Bitcoin settlement security.

Before launching mainnet, the team open-sourced its rollup stack, ran multiple testnets, and expanded early ecosystem participation. In addition, campaigns like “Unfreeze ₿apps” helped attract builders and grow community interest. These initiatives prepared Citrea for its mainnet rollout on January 27, 2026.

Citrea also enters a market where Bitcoin Layer 2 development has already created multiple major precedents. Stacks launched its mainnet in 2021 and introduced Bitcoin-anchored smart contract functionality. Rootstock launched in 2018 and used a sidechain model supported by merged mining. Meanwhile, Lightning Network focused on fast payment scaling rather than DeFi. More recently, Botanix launched in 2025 and pushed newer execution-layer approaches.

Market history also supports strong interest in Bitcoin scaling launches. For example, Stacks drove major investor attention after its mainnet traction improved, and STX rallied sharply in the months that followed amid higher developer activity and rising TVL. In contrast, Rootstock grew more slowly due to bear market conditions, although it still attracted miner participation and built long-term infrastructure. 

Key Features of Citrea Mainnet Launch

Citrea operates as a ZK-rollup. It processes transactions off-chain and generates validity proofs to settle results on Bitcoin. This structure allows Citrea to scale execution while using Bitcoin as the final security and settlement anchor.

Citrea also aims to support DeFi without forcing users to rely on high-trust intermediaries. Instead, it tries to create lending and trading rails that operate in a Bitcoin-native framework, which could reduce fragmentation across multiple wrapped asset environments.

A major highlight of the launch is ctUSD. Citrea introduced ctUSD as a stablecoin issued in partnership with MoonPay and powered by M0 infrastructure. ctUSD aims to improve stable settlement liquidity and reduce fragmentation across Bitcoin DeFi. As a result, ctUSD could help Citrea support borrowing, trading, and settlement in a cleaner and more unified market structure.

Future Implications and Market Outlook

Citrea’s mainnet launch could push Bitcoin closer to becoming a functional on-chain financial ecosystem. If Citrea attracts apps and liquidity, it can expand Bitcoin lending, trading, and settlement activity significantly.

However, Citrea faces strong competition from other Bitcoin Layer 2 solutions. Therefore, it must grow TVL, deepen liquidity for ctUSD, and prove security under real market conditions. Additionally, regulators may increase scrutiny as Bitcoin-backed stablecoins and DeFi lending become more mainstream.