On-chain Bitcoin banking is reshaping how we think about custodial solutions in crypto. One project making real moves in this space is building an entire economic framework—they call it the Product Trinity—that connects three fundamental layers.

Let's break down how this actually works:

**Layer 1: The Stablecoin Engine (MUSD)**
At the foundation sits a stablecoin issuance mechanism. This isn't just another USDT clone. The architecture is purpose-built to anchor the entire economic cycle. The stablecoin functions as the liquidity backbone—it's what enables deposits, collateralization, and redemptions across the system. Think of it as the circulatory system for an on-chain bank.

What makes this layer critical is the design philosophy: it's not designed for speculation but for utility. Every MUSD minted ties directly back to real Bitcoin collateral, creating a transparent, auditable chain of custody.

**The Economic Engine**
The three-product model creates a self-reinforcing loop. The stablecoin enables borrowing. The borrowing supports yield. The yield attracts deposits. Together, they don't just coexist—they compound each other's utility.

This is project infrastructure thinking, not quick-flip tokenomics. For anyone tracking institutional-grade on-chain banking solutions, this trinity architecture is worth monitoring closely.