What is Bound (bUSD)?
Bound is a Bitcoin-native stablecoin protocol that allows users to mint bUSD, a fully collateralized stablecoin pegged 1:1 to the U.S. dollar. Backed by verifiable reserves in assets like USDC and USDT, Bound gives users the ability to hold and transact with dollar-stable assets without relying on wrapped tokens, bridges, or non-Bitcoin chains.
Designed with compliance and transparency in mind, Bound caters to both institutional and retail use cases by offering a trust-minimized, auditable stablecoin experience all built on top of Bitcoin.
Whether it’s used for trading, payments, settlements, or savings, bUSD makes Bitcoin more usable as money while retaining Bitcoin’s uncompromising security and decentralization.
How does Bound use Torram?
Bound leverages Torram’s Bitcoin-native infrastructure stack to make bUSD possible. From price feeds to settlement proofs, here’s how Torram powers the core mechanics of Bound:
1. Verifiable Price Feeds via Bitcoin-Anchored Oracles
To maintain its peg and ensure safe minting/redemption thresholds, Bound needs stable price feeds for underlying collateral like USDC and USDT. Torram delivers this via its decentralized oracle network, which:
- Aggregates price data from trusted exchanges (Coinbase, Binance, etc.)
- Computes consensus using Threshold Signature Schemes (TSS)
- Generates a Merkle proof for the final data
- Anchors this proof inside a Bitcoin block every 10 minutes
- Torram indexers validate and expose this data for smart contracts
For Bound, this means:
- Fully verifiable on-chain price data, anchored to Bitcoin
- No reliance on centralized relayers or external APIs
- Trustless automation of peg enforcement, minting logic, and redemptions
🔗 Learn more: Torram Oracle Overview
2. Token Issuance Using TSB: Tokens That Don’t Break Bitcoin
Bound uses Torram’s TSB (Taproot Script-Path-Based) token standard to issue bUSD natively on Bitcoin Layer 1 without sidechains, bridges, or rollups.
Here’s how bUSD is different:
- All token metadata is stored in Bitcoin Taproot outputs
- Minting, burning, and transfers are fully on-chain and auditable
- Transfers happen natively on Bitcoin, not on EVM or wrapped chains
- Token balances and events are indexed using Torram’s infrastructure
TSB allows Bound to build USD denominated programmable money on Bitcoin, all while preserving privacy, auditability, and decentralization.
🔗 Learn more: TSB – The Native Bitcoin Token Standard
3. Real-Time Vault Proofs via Torram Indexers
Since Bound is backed by fiat stablecoins (USDC, USDT) stored in multi-sig wallets or regulated custodians, proving these reserves on-chain and in real-time is critical for user trust and transparency.
Bound uses Torram’s indexing layer to:
- Track UTXO balances associated with reserve addresses
- Periodically expose vault state through on-chain proofs
- Allow users and contracts to query proof-of-reserve data seamlessly
This architecture allows Bound to maintain the auditable backing needed for a fully transparent Bitcoin-native stablecoin, boosting confidence for both users and institutions.
Why is Bound using Torram?
Building a fiat-backed stablecoin directly on Bitcoin comes with technical challenges no smart contracts, no native tokens, and limited data feeds. Torram solves these core issues with:
- Decentralized oracle infrastructure, built for Bitcoin
- TSB token standard, enabling native assets on L1
- Indexers, making UTXO data easy to work with
- Full alignment with Bitcoin’s ethos no sidechains, no centralization
With Torram, Bound doesn’t need to compromise or use wrapped tokens. It can deliver a fully Bitcoin-native stablecoin protocol with transparent issuance, verifiable reserves, and L1 security.
What’s Next for Bound × Torram?
This partnership is laying the groundwork for the first compliant, Bitcoin-native USD stablecoin and there’s more coming soon:
- Real-time dashboards for bUSD issuance & reserves
- Fiat on/off ramps for minting and redeeming bUSD
- Developer SDKs for integrating bUSD into wallets & dApps
- Co-hosted community workshops and hackathons
- Institutional access rails built on top of Torram’s validator guarantees
Final Thoughts
Bound and Torram are setting a new standard for stablecoins rooted in Bitcoin, powered by decentralization.
No bridges. No compromises. Just programmable dollars on Bitcoin, built the right way.
This is the future of stable value in crypto trustless, transparent, and truly sovereign.
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