Ducat, a Bitcoin Layer 1 protocol for stablecoin and credit activity, has brought its UNIT stablecoin to the Cashu ecash protocol under the name Turbo UNIT. The integration, announced on October 24, 2026, enables dollar-pegged tokens to move privately and quickly off-chain without recording transactions on the public Bitcoin ledger.
How Turbo UNIT Works
Users deposit UNIT tokens into the Ducat Cashu mint and receive Turbo UNIT in exchange. From there, payments can be sent peer-to-peer through messages or QR codes without requiring on-chain transactions for each transfer.
The privacy mechanism relies on Cashu's use of blind signatures, which allow the mint to verify token legitimacy without linking it to the original recipient. The underlying collateral and UNIT issuance remain anchored to the Bitcoin blockchain, while Cashu handles the fast payments layer above it.
UNIT's Structure
UNIT is a Bitcoin-overcollateralized stablecoin with a soft peg to the US dollar, issued using the Runes standard on Bitcoin. Borrowers must maintain a minimum 160% collateralization ratio, meaning they lock $160 worth of Bitcoin for every $100 of UNIT minted. If collateral falls to 135% of the loan value, the position faces liquidation, creating a 25-point buffer.
Collateral is held in non-custodial Taproot vaults on Bitcoin, preserving user control over their cryptocurrency. UNIT functions as a borrowing tool, allowing Bitcoin holders to access dollar liquidity without selling their holdings.
Current Metrics
Ducat launched as a closed mainnet alpha earlier in 2026 and has processed over 4 million transactions. The protocol has secured more than $700 million in Bitcoin vaults, with over $300 million in UNIT currently minted, aligning with its overcollateralization requirements.
Key Considerations
The integration introduces a dual trust model. While the underlying collateral sits in non-custodial vaults, depositing UNIT into the Cashu mint creates custodial exposure for redemptions. Users should understand whether they are interacting with the collateral layer or the payments layer.
UNIT's typical trading range of $1.01 to $1.04 demonstrates peg stability, though a soft peg carries no guarantee of exactly one dollar. As vaulted Bitcoin grows beyond its current level, significant price swings could test the system's liquidation mechanics.
