Sui Group enters the stablecoin race with two new products. Photo: CoinGape
Another big guy enters the playground
- Sui Group is preparing to launch two new stablecoins right on the layer-1 blockchain of the same name, expected before the end of this year:
USDi : backed 1:1 by BlackRock's BUIDL Tokenize money market fund, issued with the support of Securitize and does not yield interest to holders.
suiUSDe : will pay interest to holders, inspired by Ethena's USDe - a $14 billion synthetic stablecoin, backed by a mix of digital assets and short-term Derivative contracts.
- To implement, Sui Group has joined hands with Ethena and Sui Foundation, thereby expanding liquidation and increasing utility in the Sui ecosystem.
- Sui Group , which originated from Mill City Ventures in the short-term lending space, has made a strong move into digital assets following a $450 million private Capital . The majority of the Capital was used to purchase Sui directly from the Sui Foundation at a discount, bringing the company’s total holdings to over 100 million Token , or over $300 million.
Challenge
- However, big ambitions often come with legal challenges. Regulators require stablecoins to be backed by US Treasury bonds, which may conflict with Sui Group's asset structure, which relies heavily on the Sui Token .
- In the context of the increasingly fierce stablecoin market, this move shows that Sui Group wants to enter the trillion-dollar playground, competing directly with USDT, USDC and leading blockchains.
- The trend is also spreading: Hyperliquid , a layer-1 Derivative DEX, held an auction for the rights to issue the USDH stablecoin , which was won by Native Markets (in partnership with Stripe). Meanwhile, MegaETH , an Ethereum scaling project, has just announced plans to launch the USDm stablecoin in partnership with Ethena.
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