Stacks to integrate Circle xReserve for USDC interoperability

Today, Circle announced Circle xReserve, a new interoperability infrastructure that lets blockchains deploy USDC-backed stablecoins that are interoperable with USDC across networks.

Stacks is the only Bitcoin Layer 2 in xReserve’s initial launch cohort, bringing institutional-grade stablecoin infrastructure to the Bitcoin economy.

As Bitcoin’s Liquidity Layer and leading Layer 2, Stacks expands Circle’s multichain ecosystem to Bitcoin, increasing access to unified dollar liquidity.

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What xReserve Means for Stacks

A thriving Bitcoin economy needs to be interoperable with other blockchain ecosystems. While interoperability is critical for DeFi, it often creates fragmented markets, thinner liquidity, and friction for users moving funds across chains.

xReserve solves this by enabling seamless 1:1 movement between native and bridged USDC across supported networks. For Stacks, this means:

• Deeper liquidity pools on Stacks DeFi protocols
• Simplified user experience with Circle-managed reserves
• Institutional confidence and proven infrastructure
• Bitcoin capital flowing freely to where it's most productive

With xReserve, liquidity on Stacks becomes part of Circle’s broader multichain ecosystem – connecting Bitcoin to the same liquidity networks powering Ethereum, Solana, and beyond.

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Why This Matters for Bitcoin DeFi

Stablecoins make capital move. They enable institutions to lend and borrow, and they give users access to liquidity without leaving the Bitcoin economy. 

Stablecoin activity on Stacks has surged in 2025, fueled by aeUSDC, the primary way to bridge USDC to Stacks.  An upgraded bridged USDC, powered by xReserve, is expected by year-end.

With xReserve on Stacks, a new era of Bitcoin DeFi begins. One defined by deeper liquidity, new users, and new opportunities for builders and institutions alike.