Sui Group to Launch Two Stablecoins, Including Yield-Bearing suiUSDe

Executive Summary

Sui Group, a Nasdaq-listed digital asset treasury operating on the Sui Layer 1 blockchain, is reportedly preparing to launch two new stablecoins: suiUSDe and USDi. This strategic move, executed in partnership with stablecoin startup Ethena, is anticipated to go live by the end of the current year. The introduction of these stablecoins, particularly suiUSDe with its yield-bearing mechanism, is poised to heighten competition within the rapidly expanding US dollar-pegged stablecoin market.

The Event in Detail

Sui Group, formerly known as Mill City Ventures, established its crypto treasury with a $450 million private placement. The company’s digital asset holdings have grown substantially, with its SUI token reserves surpassing $300 million. Specifically, as of September 3, 2025, Sui Group held 101,795,656 SUI tokens, valued at $344 million. The planned launch includes suiUSDe, designed to provide yield to holders, and USDi, which will not offer yield. The collaboration with Ethena leverages the latter's expertise in stablecoin issuance, complementing Sui Group's existing infrastructure on the Sui blockchain.

Financial Mechanics and Strategy

Sui Group's strategy involves a two-tiered stablecoin offering. suiUSDe represents a yield-bearing asset, which typically attracts users seeking passive income from their stablecoin holdings. This mechanism contrasts with USDi, a standard non-yield stablecoin. The partnership with Ethena is central to this launch. Ethena is known for its synthetic dollar, USDe, which has a market capitalization of $4.81 billion, positioning it as the third-largest stablecoin. This collaboration allows Sui Group to integrate a proven stablecoin issuance framework into the Sui ecosystem.

Furthermore, Sui Group has a standing agreement to acquire SUI tokens directly from the Sui Foundation at a discounted price. This allows the company to accumulate its native asset, increasing its treasury holdings and potentially generating shareholder value. This approach bears resemblance to the strategy employed by other publicly traded companies that have integrated digital assets into their corporate treasuries, such as MicroStrategy with its Bitcoin acquisitions.

Market Implications

The entry of suiUSDe and USDi into the market is expected to intensify the competitive landscape for US dollar-pegged stablecoins. The stablecoin market experienced significant growth in 2025, with total capital increasing from approximately $205 billion to over $290 billion as of September 24. Projections from figures such as Treasury Secretary Scott Bessent indicate the US dollar-pegged stablecoin market could exceed $2 trillion by 2028. The introduction of a yield-bearing stablecoin like suiUSDe could attract new capital and users, particularly given the strong demand for such products. This could further drive innovation and user adoption within the broader Web3 ecosystem and contribute to the growth of the Sui blockchain as a platform for financial applications.

Expert Commentary

The stablecoin market continues to evolve, with new entrants and innovative models emerging. While established stablecoins like Tether's USDT and Circle's USDC dominate, accounting for significant market shares and inflows, new synthetic and yield-bearing stablecoins, including Ethena's USDe, have demonstrated rapid growth. The growth trajectory underscores the increasing demand for stablecoins as a reliable store of value and medium of exchange, attracting both retail and institutional interest. The Sui Group's initiative aligns with this trend, seeking to capture a share of the expanding market through differentiated product offerings.

Broader Context

Sui is a proof-of-stake Layer 1 blockchain positioned as an alternative to established platforms like Ethereum and Solana. Sui Group's move to launch stablecoins directly on this network strengthens the financial infrastructure of the Sui ecosystem. This development also reflects a broader trend of corporate entities integrating digital assets into their core business strategies. As the digital asset space matures, the role of regulated, Nasdaq-listed companies in fostering mainstream adoption of blockchain technologies and digital currencies is becoming increasingly significant. The success of suiUSDe and USDi will serve as a case study for corporate stablecoin initiatives and their potential impact on the competitive dynamics of the digital asset market.