Sui has announced that together with SUI Group, it will be launching its own native stablecoin to be issued by Ethena, according to the organisation’s blog.
The L1 blockchain has revealed that it will be following in the footsteps of many others in recent months and developing a stablecoin.
Coined $SuiUSDe, the issuance will be controlled by Ethena, a popular issuer supporting DeFi protocols. Also, another stablecoin called $USDi will be available on the network, backed by BlackRock’s BUIDL fund.
Speaking on the impact, Chairmand Marius Barnett of SUI Group expressed:
SUIG launching suiUSDe represents our first step to building infrastructure as a treasury vehicle in our vision of creating the new generation of a ‘SUI Bank.’ This is yet another mechanism through which we are driving liquidity and value for the Sui ecosystem.
Adding to this, Ethena Founder and CEO stated:
Sui’s performance and composability made it a clear choice for bringing these powerful, new-age stablecoin products beyond the EVM. This is an exciting time to offer an innovative new dollar product for one of the most robust DeFi environments in crypto.
The reserve model will follow similar reserves of other stablecoins, including short-term assets, as well as generating income with net amount distributed across the community to enable $SUI token buyback, currently sitting at a $12B market cap with a $3.52 price.
Additionally, this is also strategically planned to bode well for the NASDAQ listed company SUI Group with their treasury supporting the native token.
