Sui Brings Native Stablecoins With Ethena Partnership, Targeting On-Chain Liquidity Shift

suiUSDe becomes the first income-generating stablecoin on a non-EVM network using Ethena’s reserve strategy.

Revenue from suiUSDe reserves will be used to buy SUI from the market, creating a recurring liquidity loop.

Regulatory pressure increases as U.S. lawmakers assess synthetic stablecoins under the proposed GENIUS Act.

Sui is moving to reduce dependence on external stablecoin providers by launching two native dollar assets through a three-way collaboration. Nasdaq-listed SUI Group Holdings, synthetic dollar issuer Ethena Labs, and the Sui Foundation confirmed plans to deploy suiUSDe and USDi later this year

According to joint statements, suiUSDe will operate as a synthetic yield-bearing token backed by digital assets and offsetting futures positions. Meanwhile, USDi will offer a non-yield alternative backed 1:1 by BlackRock’s BUIDL tokenized money market fund. This marks the first time a non-EVM network introduces an income-generating dollar-denominated token.

Ethena Infrastructure Supports New Stablecoin Model

The suiUSDe design follows Ethena’s existing USDe framework, which has reached over $14 billion in circulation. However, this version will be exclusive to the Sui blockchain and branded under the SUI Group banner

Both the Sui Foundation and SUI Group confirmed that revenue generated through reserves will be used to acquire SUI tokens directly from open markets. That structure creates an internal loop of liquidity while redistributing value back to the network. Mysten Labs Co-Founder Adeniyi Abiodun described the project as a direct addition to existing trading protocols like DeepBook, placing it within Sui’s current infrastructure stack.

Strategic Diversification Away From USDC and USDT

The initiative reflects a broader trend of blockchain networks seeking alternative stablecoin models rather than relying solely on incumbents like Circle’s USDC and Tether’s USDT. Hyperliquid and MegaETH have recently adopted similar strategies by granting issuance rights to independent partners

Notably, Sui processed $229 billion in stablecoin transfer volume in August 2025, according to the Sui Foundation. That processing capability reportedly influenced Ethena’s decision to deploy on the network, citing high throughput and composability.

Regulatory Attention Over Synthetic Stablecoins

While the launch introduces a new revenue mechanism for the Sui ecosystem, synthetic stablecoins are currently under review in the United States. Lawmakers have included such structures in the proposed GENIUS Act, which calls for stricter reserve mandates

Additionally, regulators opened an investigation in late September into treasury firms operating in the digital asset sector, a category that includes SUI Group. However, the partnership proceeds despite these developments, positioning Sui among the few networks combining futures-based stabilization with tokenized money market backing.

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