Sui to Launch Two Native Stablecoins with Ethena Labs

Sui Group Holdings’ announcement marks the entity’s first foray into proprietary digital assets, positioning the Sui blockchain as a more competitive player in the decentralized finance landscape. The dual stablecoin approach—featuring both yield-bearing and non-yield tokens—creates distinct value propositions for different user segments. While USDi will offer no yield to holders, suiUSDe will provide income generation, making it particularly attractive for investors seeking stable returns within the Sui ecosystem.

Marius Barnett, Chairman of SUI Group, framed this initiative as foundational to their broader vision, stating, “This represents our first step to building infrastructure as a treasury vehicle in our vision of creating the new generation of a ‘SUI Bank’.” The partnership aims to strengthen Sui’s position against market leaders USDT and USDC by offering native alternatives that leverage the blockchain’s technical capabilities and strategic partnerships.

The collaboration represents an industry-first model that brings together a digital treasury (Sui Group Holdings), a blockchain foundation (Sui Foundation), and a stablecoin issuer (Ethena Labs). This tripartite structure could set a new standard for how blockchain ecosystems develop native financial infrastructure while maintaining institutional credibility and technical robustness.

The suiUSDe stablecoin represents a significant technical milestone as the first income-generating stable asset native to a non-Ethereum Virtual Machine (EVM) blockchain. Powered by Ethena’s infrastructure, this synthetic dollar is expected to go live before the end of 2025 and will be supported by a mix of digital assets and short derivatives. This structure allows it to generate yield while maintaining price stability pegged to the US dollar.

The Sui Foundation has outlined a strategic reinvestment plan where net income from the token’s reserves will be channeled back into SUI tokens through open market purchases. This mechanism creates a virtuous cycle that directly supports ecosystem growth while potentially increasing demand for the native SUI token. Adeniyi Abiodun, co-founder of Mysten Labs, emphasized the significance, stating, “Bringing to Sui the first digital dollar of its kind in suiUSDe represents a major step forward and a new pillar of Sui DeFi infrastructure.”

The yield-bearing nature of suiUSDe distinguishes it from many existing stablecoins and could attract DeFi participants looking for stable returns without leaving the Sui ecosystem. By combining the stability of a dollar peg with income generation, Sui Group aims to create a more compelling value proposition than traditional stablecoins that offer no yield to holders.

The USDi stablecoin takes a fundamentally different approach, offering pure stability through its 1:1 backing by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). Launched in 2024, BUIDL invests primarily in short-term US government securities and cash equivalents, providing token holders with direct exposure to the stability of US money markets combined with the speed and efficiency of the Sui blockchain.

This backing structure positions USDi as a conservative alternative to yield-bearing stablecoins, appealing to users who prioritize capital preservation and institutional-grade security. The involvement of BlackRock, managed in collaboration with tokenization specialist Securitize, adds significant credibility to the offering and bridges traditional finance with blockchain technology.

Barnett highlighted the strategic importance of this initiative, noting, “We believe this initiative will add another powerful mechanism to drive liquidity, utility, and long-term value across the Sui blockchain, while positioning SUIG as one of the first publicly traded gateways to the global stablecoin economy.” The USDi stablecoin essentially brings the security of traditional money market funds to blockchain users, creating a bridge between conventional finance and decentralized ecosystems.

Ethena Labs, the protocol behind USDe—the third-largest stablecoin behind USDT and USDC—is providing the technical infrastructure through its Whitelabel program. This stablecoin-as-a-service offering allows blockchains and applications to issue digital dollars using Ethena’s established infrastructure with minimal friction. The program description notes that it “allows the most performant chains, consumer-facing applications, and wallets with existing user distribution to instantly create dollar assets.”

The partnership positions Sui to compete more effectively in the crowded stablecoin market, where USDT and USDC currently dominate. By offering two distinct stablecoin options—one yield-generating and one institutionally-backed—Sui creates multiple entry points for different user preferences and risk profiles. This diversification strategy could help the blockchain capture market share from both conservative users and yield-seeking DeFi participants.

The announcement at Token2049 underscores the strategic timing of this initiative, as the blockchain industry continues to seek more sophisticated financial primitives. By leveraging Ethena’s proven infrastructure and BlackRock’s institutional credibility, Sui Group Holdings aims to accelerate adoption of its blockchain while building toward its vision of a comprehensive “SUI Bank” ecosystem that combines traditional finance security with blockchain innovation.