What is USDB in simple terms?

USDB is a digital dollar on Bitcoin. Each USDB is worth $1 and backed by U.S. Treasury bills. You can use it to hold stable value on Bitcoin, earn yield from T-bill interest, or trade on Flashnet's exchange.

USDB is backed 1:1 by U.S. Treasury bills, which are considered one of the safest assets in the world. The reserves are held by regulated custodians with regular attestations. However, like all digital assets, smart contract and operational risks exist.

How is USDB different from USDT or USDC?

USDB is native to Bitcoin, while USDT and USDC primarily exist on Ethereum and Tron. USDB is backed exclusively by T-bills and passes yield directly to holders — unlike USDC, where reserve yield goes to Circle rather than token holders. You don't need to bridge to another chain to use it.

Can I earn yield on USDB?

Yes. USDB generates yield from the U.S. Treasury bills backing it. Holders earn this yield automatically — no staking contracts, no lock-up periods, and no impermanent loss risk. Check current rates on the Flashnet Stablecoin Yield Tracker.

What are the risks of holding USDB?

Primary risks include smart contract risk on the layer-2 network, regulatory changes affecting stablecoin operations, and custodial risk for the T-bill reserves. USDB mitigates these through audited contracts, regulated custody, and transparent reserve reporting.

What Is USDB Stablecoin?

USDB is a dollar-pegged stablecoin built natively on Bitcoin, backed 1:1 by U.S. Treasury bills. It lets Bitcoin users hold stable value, earn yield, and participate in DeFi without leaving the Bitcoin ecosystem.

Flashnet Team|February 11, 2026

What Is USDB?

USDB is a stablecoin pegged to the U.S. dollar that exists natively on Bitcoin layer-2 networks. Unlike USDT or USDC which live primarily on Ethereum and Tron, USDB was designed from the ground up for Bitcoin traders and holders who want dollar stability without bridging their assets to another blockchain.

Each USDB token is backed by short-duration U.S. Treasury bills held in regulated custodial accounts. This backing model means USDB earns yield from government securities, and that yield is passed through to holders. The result is a stablecoin that doesn't just preserve value — it grows it.

USDB was created by Flashnet to solve a fundamental problem in Bitcoin DeFi: there was no native, yield-bearing stablecoin. Bitcoin traders previously had to bridge to Ethereum to access stablecoins, introducing bridge risk, gas fees, and complexity. USDB eliminates all of that.

How USDB Works

USDB maintains its dollar peg through a reserve system backed by U.S. Treasury bills. When you mint USDB, the equivalent dollar value is used to purchase T-bills through regulated financial institutions. When you redeem USDB, T-bills are liquidated to return dollars.

The yield mechanism is straightforward: T-bills generate interest, and that interest accrues to USDB holders. Current T-bill yields mean USDB holders earn a competitive APY simply by holding the stablecoin — no staking, no lock-ups, no impermanent loss risk.

USDB operates on Bitcoin layer-2 networks including Spark, giving it the fast settlement and low fees of L2 while maintaining the security of Bitcoin's base layer. Transactions settle in seconds rather than the 10-minute Bitcoin block time.

How to Use USDB on Flashnet

Flashnet is the primary venue for USDB trading and yield earning. You can swap between Bitcoin and USDB with minimal slippage using Flashnet's AMM, or place limit orders on the order book for precise execution.

To get started, visit the Flashnet trading platform and connect your wallet. You can swap BTC for USDB in a single transaction with no bridging required.

For a detailed comparison of stablecoin yields, check out the Stablecoin Yield Tracker to see how USDB compares to other options.

Related Tools

Stablecoin Yield Tracker

Frequently Asked Questions

Stablecoin Interest Rates Comparison 2026 Bitcoin Stablecoin Backed by Treasury Bills How to Convert Bitcoin to Stablecoin

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