The Sui blockchain, which is rapidly gaining prominence among Layer-1 solutions, is poised to introduce a major innovation to its ecosystem. Sui Group, Ethena, and the Sui Foundation will launch two new stablecoins: USDi and suiUSDe. This initiative marks the first time native stablecoins will be traded on the Sui network.
One stablecoin will be backed by BlackRock
USDi will be backed 1:1 by BlackRock's tokenized money market fund, BUIDL. This fund, issued through Securitize, brings the secure nature of traditional finance to the blockchain environment. Meanwhile, suiUSDe will be a synthetic dollar backed by digital assets and derivatives, similar to Ethena's $14 billion USDe stablecoin model. This structure is expected to provide yield for users. Marius Barnett, President of Sui Group, said, “We believe this initiative will increase liquidity on the Sui blockchain, expand its use cases, and create long-term value. It will also make Sui Group one of the first public gateways to the global stablecoin economy.”
Stablecoin competition is heating up
In the cryptocurrency sector, stablecoins have long been centered around Tether’s USDT and Circle’s USDC. However, recently, various projects have begun launching their own stablecoins. The Layer-1 network HYPE held an auction for the right to issue the USDH stablecoin; Native Markets, in partnership with Stripe, won this auction, aiming to reduce the ecosystem’s dependence on USDC. Similarly, the Ethereum scaling solution MegaETH plans to partner with Ethena to launch a native stablecoin.
Sui’s new move is a strong example of this trend. In August, stablecoin transfer volume on the Sui blockchain exceeded $229 billion, setting a new record. This high volume particularly attracted the attention of Ethena Labs. The company's CEO, Guy Young, said, "Sui's performance and interoperability were decisive for us."
Sui Group, listed on Nasdaq, recently announced that its SUI token holdings exceeded $300 million. The company is able to purchase tokens at a discount thanks to a special agreement with the Sui Foundation. Previously operating under the name Mill City Ventures, the institution established its crypto treasury with a $450 million private placement.
The Sui blockchain is a Layer-1 solution operating with a proof-of-stake mechanism and positioned as an alternative to networks like Ethereum and Solana. The native stablecoin initiative is considered a significant step that will strengthen Sui's position in the ecosystem. At the time of writing, the SUI price is trading at $3.5, a 1% increase.
