Sui Group to Launch Two Stablecoins with Ethena Labs

• Sui Group to issue suiUSDe and USDi as Sui blockchain’s first native stablecoins.
• Ethena Labs’ infrastructure will power the yield-based synthetic dollar suiUSDe.
• Regulatory scrutiny looms as stablecoin issuers face reserve and compliance rules.

Sui Group Holdings, a Nasdaq-listed digital asset treasury company, announced on Wednesday plans to launch two stablecoins on the Sui blockchain by the end of 2025. The company confirmed the move during TOKEN2049, revealing a partnership with stablecoin issuer Ethena Labs and the Sui Foundation. According to The Information, the initiative is an industry first collaboration involving a treasury, a foundation, and a stablecoin issuer.

Two new stablecoins planned 

The project will introduce suiUSDe, a yield generating synthetic dollar, and USDi, a non yielding stablecoin backed by tokenized money market funds. Sui Group said suiUSDe will be powered by Ethena’s infrastructure, which supports the third largest USD denominated digital asset, USDe. 

Notably, USDi will be backed one to one by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), offering stability anchored in short term U.S. government securities. Ethena Labs described the rollout as part of its Whitelabel program, which allows blockchains and applications to create digital dollars using its platform. 

Guy Young, founder and chief executive of Ethena Labs, said Sui’s performance and composability made it a strong candidate for hosting such products. With more than $15 billion in assets already circulating under Ethena’s system, Sui joins partners like MegaETH in issuing native stablecoins.

Institutional backing and treasury role

Sui Group Holdings rebranded from Mill City Ventures after raising $450 million in a private placement to build its crypto treasury. The company has accumulated more than $300 million in SUI tokens, according to a recent statement. 

Through an agreement with the Sui Foundation, it also purchases tokens directly at a discount, strengthening its role as a treasury participant. Chairman Marius Barnett said the company’s vision goes beyond treasury functions, describing plans to grow into an infrastructure builder within the ecosystem. 

Barnett referred to the project as a step toward creating a next generation “SUI Bank,” designed as a liquidity hub for the blockchain. He added that net revenues from stablecoin reserves could be reinvested into acquiring more SUI tokens, which would expand the company’s holdings.

Mysten Labs co-founder Adeniyi Abiodun supported the initiative, noting that suiUSDe is the first time a non-Ethereum Virtual Machine blockchain will host a native income-generating stable asset. Abiodun said the move would strengthen Sui’s decentralized finance infrastructure.

Related: AMINA Becomes First Regulated Bank to Offer SUI Trading and Custody

Regulatory pressure and market context

However, the launch comes at a time of increased regulatory focus on digital asset treasuries and stablecoin issuers. The GENIUS Act requires issuers to hold reserves in U.S. Treasuries, a condition that could complicate operations for Sui Group. 

Analysts have noted that yield bearing stablecoins in particular often face scrutiny over whether they qualify as securities. The U.S. has also opened probes into digital asset treasury firms, raising questions about governance and potential insider trading within the sector. 

Market performance has also been challenging, with declining managed net asset values across the industry. Sui Group’s plan comes at a time of regulatory scrutiny, making approval and market reception important for the project’s success.

Despite these pressures, Sui’s decision is a broader trend among Layer 1 blockchains to launch native stablecoins. Tron and Near have previously pursued similar strategies, aiming to reduce reliance on external tokens such as USDT and USDC. By introducing suiUSDe and USDi, Sui aims to increase liquidity and provide new tools for decentralized applications within its network.

Meanwhile, Sui Group’s partnership with Ethena Labs and the Sui Foundation is a notable move in the stablecoin sector. The introduction of suiUSDe and USDi shows Sui’s effort to expand its marketplace with native financial tools. While regulatory scrutiny and market pressures remain, the launch will potentially be a step forward for both the company and the blockchain.