The Ducat protocol, which operates on the Bitcoin base layer, announced the integration of its UNIT stablecoin with the Cashu ecash protocol on October 24, 2026. This new version, dubbed Turbo UNIT, enables private, off-chain peer-to-peer payments via messages or QR codes without requiring on-chain transactions for each transfer.
The system utilizes Cashu's blind signatures to ensure transaction privacy. While payments occur on the Cashu layer, the underlying collateral and issuance of UNIT remain on the Bitcoin blockchain. UNIT is a Bitcoin-overcollateralized stablecoin issued via the Runes standard with a soft peg to the US dollar, typically trading between $1.01 and $1.04.
Borrowers must maintain a minimum collateralization ratio of 160 percent, with a liquidation threshold set at 135 percent. Collateral is held in non-custodial vaults using the Taproot upgrade. Since its closed mainnet alpha launch earlier in 2026, the Ducat protocol has processed over 4 million transactions.
As of the announcement, the protocol has secured more than $700 million in Bitcoin collateral, with over $300 million in UNIT minted. The integration allows UNIT holders to utilize the token for private payments while maintaining its original function as a borrowing instrument for Bitcoin holders.
