Sui Group Partners With Ethena Labs To Launch Two Native Stablecoins

Sui Group Holdings, the entity behind the Sui blockchain, plans to launch two native stablecoins in partnership with Ethena Labs and the Sui Foundation. 

The move is a significant strategic development for the Sui blockchain, which aims to expand its ecosystem’s liquidity and utility. 

Sui Group To Launch Two Stablecoins 

The new stablecoins are the Sui Group’s first foray into proprietary digital assets. The new tokens, suiUSDe and USDi, will be launched in partnership with stablecoin startup Ethena Labs and the Sui Foundation. The announcement was made during Token2049, and is an industry-first collaboration between a digital treasury, a blockchain foundation, and a stablecoin issuer. 

While the USDi stablecoin will not offer any yield to holders, the suiUSDe will offer yield, making it an attractive prospect for investors who want a stable return. The partnership also aims to strengthen Sui’s position against USDT and USDC, currently the dominant stablecoins in the market. 

The suiUSDe Stablecoin 

The suiUSDe stablecoin is a synthetic dollar powered by Ethena’s infrastructure and is expected to go live before the end of 2025. Marius Barnett, Chairman of SUI Group, stated, 

The suiUSDe stablecoin will also be the first time a non-Ethereum Virtual Machine (EVM) blockchain will host a native, income-generating stable asset. The Sui Foundation stated that the net income from the token’s reserves will be reinvested into SUI tokens in the open market, fostering ecosystem growth. Adeniyi Abiodun, co-founder of Mysten Labs, stated, 

The USDi Stablecoin 

The USDi stablecoin is backed 1:1 by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). Launched in 2024, BUIDL invests primarily in short-term US government securities and cash equivalents. The USDi stablecoin will give token holders access to the unparalleled stability of US money market exposure, combined with the speed of the Sui blockchain. Barnett added, 

The Role Of Ethena Labs And BlackRock 

Ethena Labs is the protocol behind USDe, the third-largest stablecoin in the market behind USDT and USDC. The new tokens on Sui are part of the protocol’s Whitelabel program, a stablecoin-as-a-service program that allows blockchains and applications to issue digital dollars using Ethena’s infrastructure. 

The USDi stablecoin will be backed 1:1 with BlackRock’s tokenized money market, BUIDL, managed in collaboration with tokenization specialist Securitize. Meanwhile, suiUSDe will be similar to Ethena’s USDe stablecoin and will be supported by a mix of digital assets and short derivatives.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.