SUI’s Stablecoin Launch: Can suiUSDe and USDi Power the Next Big Wave of DeFi Growth?

The Sui blockchain is stepping into a major new phase. A partnership between SUI Group Holdings, Ethena Labs, and the Sui Foundation is bringing two native stablecoins suiUSDe and USDi directly to the Sui ecosystem. This collaboration marks one of the most significant financial developments on the Sui network to date, combining the innovation of blockchain with the credibility of traditional finance.

Stablecoins are cryptocurrencies designed to maintain a fixed value, usually pegged to the U.S. dollar. They are the backbone of decentralized finance (DeFi), allowing traders and investors to move assets across blockchains without volatility risk. But Sui’s approach aims to take stablecoins a step further by introducing yield-bearing features and real-world asset backing.

The Partnership Behind the Launch

On October 1, 2025, SUI Group Holdings a Nasdaq-listed digital asset treasury firm, announced its collaboration with Ethena and the Sui Foundation to launch Sui’s first native stablecoins.

The two stablecoins have different structures and purposes:

• suiUSDe is built on Ethena’s synthetic dollar model, which allows it to generate yield while maintaining stability. This makes it appealing to DeFi users who want stable value and income potential on Sui’s fast, Layer 1 blockchain.
• USDi, on the other hand, is backed by institutional-grade assets such as BlackRock’s BUIDL fund. This means it will be supported by real-world investments, providing extra assurance to institutions and conservative users who value transparency and traditional collateral.

Together, these two stablecoins are designed to strengthen liquidity on Sui, increase adoption of on-chain financial services, and connect blockchain-based transactions to public market structures. According to SUI Group’s Chairman, Marius Barnett, this initiative is not about reinventing the wheel but about creating “economic scalability”, combining proven financial models with Sui’s blockchain speed and efficiency. The rollout is expected by the end of 2025.

This partnership makes Sui the first non-EVM (Ethereum Virtual Machine) blockchain to host a yield-bearing stablecoin natively. Most existing DeFi ecosystems like Ethereum, Polygon, or Avalanche, rely on EVM-compatible assets and often struggle with high transaction costs or slower performance. Sui’s infrastructure, optimized for speed and scalability, gives it an edge in hosting next-generation stablecoins that can move quickly and settle instantly.

By merging blockchain innovation with traditional asset management, this move could attract both crypto-native users and institutional investors. For everyday DeFi participants, it means faster transactions, potentially higher yields, and less dependence on external bridges or wrapped tokens. For institutions, it represents a compliant and transparent way to access blockchain-based financial products.

Comparing the Two Stablecoins

Feature	suiUSDe	USDi
Model Type	Synthetic, yield-bearing	Asset-backed, collateralized
Backing Source	Ethena’s synthetic dollar system	BlackRock’s BUIDL fund and other institutional assets
Goal	Enable on-chain yield and liquidity	Offer secure, institution-friendly stability
Network	Native to Sui (non-EVM)	Native to Sui (non-EVM)
Target Users	DeFi participants and yield seekers	Institutional investors and risk-averse users

 

This dual structure allows Sui to serve two different audiences: active DeFi users seeking returns and traditional investors looking for reliability.

What It Means for the Sui Ecosystem

Stablecoins are essential for liquidity, trading, and lending in decentralized finance. By introducing suiUSDe and USDi, Sui gains a major tool to compete with larger ecosystems like Ethereum. If adoption grows, Sui could see a surge in Total Value Locked (TVL) the total amount of assets deposited in its DeFi applications. Experts believe that the addition of yield-generating stablecoins could push Sui’s TVL past $10 billion by 2026, significantly raising its position in the global DeFi rankings. The network’s non-EVM design also means transactions remain faster and cheaper, which could encourage developers to build more DeFi applications and attract users from other chains. Institutional participation adds another layer of legitimacy. Since USDi will be backed by assets like BlackRock’s BUIDL fund, it bridges the gap between traditional finance (TradFi) and decentralized finance (DeFi) two worlds that have often operated separately.

The potential benefits are clear: greater liquidity, stable on-chain yields, and stronger institutional interest. However, the challenges are equally real. If yields fall, collateral values fluctuate, or regulatory frameworks tighten, the project could face pressure. Non-EVM chains also face the hurdle of interoperability, attracting liquidity and users from ecosystems where Ethereum compatibility dominates.

If Sui can manage these challenges while maintaining transparency and sustainable returns, suiUSDe and USDi could become flagship stablecoins, proving that performance and compliance can coexist in DeFi.

Looking Ahead

The planned end-of-year rollout of suiUSDe and USDi positions Sui at the center of stablecoin innovation. As global stablecoin circulation surpasses $200 billion, competition among blockchains to host reliable, scalable, and yield-bearing assets is fierce. If the partnership succeeds, Sui could become a key hub for DeFi activity, offering users both fast performance and institutional-grade stability. But long-term success will depend on consistent liquidity, security, and adoption from both developers and investors.

In essence, the launch of suiUSDe and USDi represents more than just two new tokens. It’s a significant moment for the Sui ecosystem, a step toward merging the reliability of traditional finance with the innovation of decentralized systems. Whether it becomes a cornerstone of DeFi or just another experiment will depend on how effectively it delivers stability, yields, and trust over time.