> For the complete documentation index, see [llms.txt](https://docs.nubit.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.nubit.org/usd1/usd1-bitcoins-native-stablecoin/how-it-works.md).

# How It Works

<figure><img src="/files/Rp2WTGHRt3khky4ogcPE" alt=""><figcaption></figcaption></figure>

USD1’s integration with Bitcoin is powered by Bitcoin Thunderbolt. Unlike other stablecoins tied to separate blockchains, USD1 lives natively within Bitcoin’s UTXO model, preserving self-custody and aligning with Bitcoin’s decentralized ethos. Thunderbolt’s trust-minimized programmability ensures that value moves instantly through UTXO rights delegation, allowing dollars, in the form of USD1, to reside directly on Bitcoin.

With USD1, Bitcoin evolves from a store of value into a fully functional platform for stable, everyday finance. Its native integration unlocks a wide range of practical applications:

* Global Payments: Fast, low-cost cross-border transfers, rivaling traditional financial systems.
* Payroll and Remittances: Simplified salary payments and family support, especially in underserved regions with limited banking access.
* DeFi Tools: Stablecoin-based lending, trading, and other decentralized finance applications, all secured by Bitcoin’s robust network.

As the only stablecoin running natively on Bitcoin’s mainnet, USD1 is positioned to dominate stablecoin activity on the network. With Bitcoin’s market cap already exceeding $2 trillion, USD1 could capture over 90% of stablecoin volume, cementing Bitcoin’s role in the global financial landscape.

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