Sui’s homegrown stablecoin launches, offering the potential of Treasury yield returning to the network.

The initiative for a Sui Dollar, launched by stablecoin company Bridge, was unveiled towards the end of last year.

Mysten Labs co-founders (from left to right): George Danezis, Sam Blackshear, Kostas Kryptos Chalkias, Adeniyi Abiodun (Mysten Labs modified by CoinDesk)

Key Information:

• The yield generated by the Sui stablecoin will be reinvested into the network via Sui token buybacks and funding allocated to DeFi and automated market making to encourage swaps.
• The Sui blockchain was developed by a team of former Meta engineers who participated in the now-defunct Libra/Diem digital dollar initiative.

The Sui Dollar (USDsui), the stablecoin associated with the Sui blockchain, was launched on Wednesday with a commitment that the returns from the assets supporting the token will be redirected into the originating ecosystem.

Returns on the bonds and liquid assets that underlie USDsui will be utilized to buy back and withdraw SUI$0.9388 tokens from circulation or allocated towards DeFi protocols and automated market making to promote swaps, stated Adeniyi Abiodun, a co-founder of Mysten Labs, the initial developers of Sui.

The stablecoin sector has experienced significant growth, with the $310 billion market-cap industry primarily dominated by Tether and Circle Internet (CRCL), now venturing into global payment systems. Both entities retain all yields earned from the substantial U.S. Treasury bonds that support their dollar-pegged tokens, USDT and USDC, respectively.

“We are beginning to observe a shift in the business model of stablecoin issuers, where the generated yield tends to remain with external parties that do not contribute value back to the ecosystem,” noted Adeniyi Abiodun, co-founder of Mysten Labs, the original developers of Sui. “This yield can effectively be redirected from the foundation back into the Sui ecosystem.”

The announcement regarding the coin, issued by Bridge, a stablecoin company purchased last year by payments giant Stripe, was made initially towards the end of 2025. Sui was developed by a team of former Meta engineers who were involved in the social media company’s abandoned Libra/Diem digital dollar project.

“Currently, those funds do not benefit the ecosystem; they predominantly flow outward,” stated Abiodun. “Our objective is to close that loop. Therefore, it is genuine yield from real-world finance that will be reinvested into DeFi, fostering a flywheel effect.”

Establishing a stablecoin is not as daunting when your network has processed over $1 trillion in stablecoins, including USDT, USDC, and other variants, according to Abiodun.

“The Sui Foundation already possesses USDC and various other stablecoins, and can thus transition a significant amount directly to Sui Dollar. Mysten Labs is also capable of doing the same. Additionally, we have a considerable number of investors and hedge funds interested in minting Sui USD. Therefore, establishing this is quite straightforward,” he mentioned.

Abiodun’s former colleagues from Facebook and partners in the Libra project include the co-founders of Mysten Labs: George Danezis (chief scientist), Sam Blackshear (CTO), Evan Cheng (CEO), and Kostas Kryptos Chalkias (chief cryptographer).