Sui Blockchain Brings Us into the Era of Native Stablecoins Thanks to Ethena and BlackRock

In a historic development that will change liquidity on performant blockchains, Sui will launch its first native stablecoins, suiUSDe and USDi. This ambitious effort led by digital asset treasury leader, SUI Group (NASDAQ: SUIG), the Sui Foundation, and leading stablecoin protocol Ethena, will unleash new speed, transparency, and efficiencies into the Sui DeFi applications, payment systems, and ultimately bring in institutional-grade capital to the Sui ecosystem. 

The announcement was made at the TOKEN2049 conference, an authoritative event in the world of web 3.0, and reinforces not only Sui’s position as a Layer 1 blockchain focused on speed and scalability, but of Ethena's synthetic dollar expertise, and BlackRock’s innovative approach to tokenized funds.

As the crypto market evolves towards integrated and efficient financial primitives, Sui's decision to house proprietary stablecoins fills an essential gap and need for chain-specific assets that minimize friction when traveling cross-borders or yield accruing on-chain. With the Sui Blockchain transferring $229 billion in stablecoin transfer volume in August 2025 alone, this momentous announcement could increase the Sui Blockchain's total value locked (TVL), real estate for developers, traders and institutions.

Deciphering Sui Blockchain: A High-Speed Foundation for Advancements

Before jumping into details about stablecoins, it is important to establish an understanding of why Sui succeeds as a foundation for these types of products. Sui is an open-source Layer 1 blockchain created in 2023 by former of Meta employees for ultra through-put and low latency applications. 

This object-centric data model and use of the Move programming language allows concurrent transaction processing without compromising security, allowing thousands of transactions to be completed in a second while working around the congestion issues of traditional blockchain networks. 

Sui’s architecture has already become the layer of choice for web3 games, SocialFi and DeFi protocols, totaling over 100M unique active addresses and a growing ecosystem of dApps. Until a few days ago, Sui had to rely on bridged or wrapped versions of well-established stablecoins (like USDC and USDT) adding complexity, risk, and friction. The power of native, on-chain stablecoins provides composability that allows users to swap, lend, or stake their assets in real-time with sub-second finality.

The Powerhouse Partnership: SUIG, Sui Foundation, and Ethena Come Together

The launch is centered around a triad partnership that is as strategic as it is synergistic. SUI Group is a publicly traded treasury firm dedicated to digital assets. It provides institutional grade financial expertise and a plan to evolve to a "SUI Bank", which acts as a centralized liquidity mechanism for the ecosystem. As Chairman Marius Barnett stated: "This will onboard another impactful mechanism for driving liquidity, utility, and long-term value across Sui, positioning SUIG as one of the first public gateways to the global stablecoin economy."

 

In addition to SUIG' experience with treasury management, the partnership includes the Sui Foundation, the non-profit steward of the network that supplies developer grants and developing ecosystem and protocol upgrades. Their involvement will confirm the use of stablecoins is consistent with Sui's philosophy surrounding inclusivity and innovation, with revenue generated used to fund community-driven projects.

This partnership also welcomes Ethena, which powers the USDe synthetic dollar that is valued at approximately $14 billion. Ethena is ahead of the curve in stablecoin development, having decoupled the peg's buoyancy from a traditional fiat reserve. We will see Ethena offer their Whitelabel Product suite that will allow chains such as Sui to launch a customized digital dollar with minimum overhead leveraging delta-hedging for yield generation. This will see Ethena progress to facilitate small, low-cost transactions.

Understanding the Two Stablecoins: suiUSDe and USDi

While suiUSDe and USDi represent a pair of stablecoins, they are specifically designed for different use cases. They take advantage of the native Sui properties, providing complementary usage.

 

suiUSDe is a productive synthetic as the first Sui-native version of Ethena's flagship product USDe. 

Unlike traditional stablecoins that are backed by bank deposits, suiUSDe is backed synthetically and collateralized with a diversified basket of digital assets and short futures positions on centralized exchanges, which form a delta-neutral strategy that has an uncommon strategy for maintaining the stability of pegging with the US Dollar at $1 while making money to generate a return between 5%- 10% APY depending on market conditions from utilizing the funding rates and basis trades.

The other known feature of suiUSDe is its on march restitutive balance or buyback feature that shares revenue from yield that would be incentivized so seriously by SUIG and Sui Foundation to buy SUI tokens on the open market. Having this built in feature creates a positive feedback loop between the treasury of the stable coin and market buyback.

Simply, more activity and adoption of the stablecoin generates transaction fees which in turn creates demand and user activity to appreciate value for SUI coins incentivizing usage. As the first income-yielding stable asset on a non-EVM chain, suiUSDe sets the stage for Sui as a leader in programmable money for bot arbitrage and automated market making सहभागिता.

USDi: Stability Meets Tokenized TradFi

Rounding out the pair is USDi, a fiat-referenced, stablecoin backed 1:1 by shares in BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL). BUIDL is a tokenized money market fund and a $500 million monster that’s available on Ethereum, and it serves as a bridge between traditional finance (TradFi), and the blockchain. BUIDL invests in short-term U.S. Treasury bills, repurchase agreements, and cash equivalents, producing an income with capital preservation.

Partnering with Securitize, the tokenization partner of BUIDL, USDi brings BlackRock’s high respective standard of compliance and auditability to Sui. Users mint USDi by depositing BUIDL tokens (or the equivalent fiat) and receive a redeemable on-chain asset that can also be fully auditable in real-time, thanks to blockchain. This is a very compelling solution for institutions who want to park capital on Sui while maintaining compliance without user exposure to the inherent risk of altcoin volatility.

The launch of USDi is indicative of a much larger trend:

The tokenization of real-world assets (RWAs) is taking off; estimates expect $10 trillion of on-chain assets in less than 10 years. Hosting USDi puts Sui into the position to ride this wave by creating seamless collateralization for loans, derivatives, and cross-chain bridges. Can you imagine a hedge fund using "USDi" as margin in Sui-based perpetuals? What about a remittance service that could settle payments in less than a second?

BlackRock's Tokenized Fund: Propelling Sui to Institutional Levels 

BlackRock’s association via BUIDL is more than simply a brand name, it signifies confidence in Sui’s maturity. BlackRock, as the world's largest asset manager with $10 trillion AUM, has made it clear it is quite serious about utilizing blockchain; from Bitcoin ETFs to RWA pilots. BUIDL, launched in 2024, is a prime instance of this transition, allowing qualified investors to earn yield on tokenized Treasuries with true 24/7 liquidity. 

For Sui, it means instant legitimacy. The backing of USDi assures that it is properly compliant with regulators, think SOC 2 trust, KYC & AML guardrails, making it a savior for sovereign wealth funds, family offices, and corporations seeking to buy & hold digital dollars. Additionally, since the yields on BUIDL track the Fed Funds, which is currently in the 4-5% range, USDi holders can earn passive income without worrying about the counterparty risk that comes with other synthetic stables.

This mix of TradFi safety and blockchain efficiency could help accelerate Sui's TVL growth which is predicted to exceed $5 billion by the end of the year, as well as adding income sources outside of the transaction fees.

Ecosystem Boost: Liquidity, Adoption, and Long-Term Value

The implications of suiUSDe and USDi go well beyond their issuance. The introduction of these stablecoins is, for developers, a source of new primitives: flash loans within gaming economies or automated payrolls in DAOs, while still benefitting from Sui’s characteristic low costs (fractions of a cent per tx). Day traders benefit from deeper liquidity pools and less slippage in volatile markets. Daily participants will have a reliable means of exchange for NFTs or social tokens, and less friction when executing their micropayments.

In terms of economic implications, the SUI token buyback program acts as a deflationary pressure on the market, raising the price of the native token and its resulting utility. The SUIG treasury strategy enhances this buying pressure with the stablecoin influx contributing to strengthening their balance sheet and shareholder returns. As Barnett stated: "By unlocking new revenue streams associated with stablecoin adoption and transaction flow, we are focused on providing scalable economic value."

 

These contributions may lead to a virtuous cycle of integrations, such as wallets like Sui Wallet supporting minting natively, oracles providing live prices for BUIDL on layer 1 and bridges back to Ethereum for hybrid strategies. All in advance of their anticipated launches in Q4 of 2025 they are already beta testing, all while Sui continues to break use records.

Charting the Future: Sui’s Stablecoin Revolution

The rollout of suiUSDe and USDi is no mere update; it's a shrewd move that basically places Sui at the head of the race for stablecoins. Cunningly playing into the high-stakes arena where liquidity is king, these native assets, backed by Ethena's/pioneer innovations and quickly the $9 trillion asset management firm BlackRock's balance sheet, are gunning for an incredibly safe Roger mellow yield. With ongoing maturity, DeFi will soon involve a plethora of RWAs, and Sui's ecosystem will offer a chance to make a foray into the already enormous $200 billion stablecoin market, thereby instilling mass adoption, one transaction at a time.

For investors looking for the next major blockchain play, Sui's ability to combine performance, partnership, and programmable finance makes it a cause that should not be missed. Whether you're now striking a deal involving the next big app or holding SUI as a long-term investment, this stablecoin story is one such ship-the better things will soon be on their way for the Move-powered marvel. Keep watching live this digital currency launch-Sui's financial renaissance is beginning.

 

This article is contributed by an external writer: Natalia Ivanov, Crypto Whales Info.

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