Sui Dollar (USDsui), a stablecoin for the Sui blockchain, went live on Wednesday with the promise that revenues from the assets backing the token will flow back into the ecosystem from which it was born.
Proceeds from bonds and liquid assets backing USDsui will be used for buybacks and exits Adeniyi Abiodun, an original contributor to Sui and co-founder of Mysten Labs, said the tokens go from being circulated or deployed to decentralized finance (DeFi) protocols, as well as automated market making for incentivized swaps.
Stablecoins are growing rapidly, and the $310 billion industry, led by Tether and Circle Internet (CRCL), is entering the global payments space. The two companies retain all proceeds generated from large amounts of U.S. Treasuries to back their U.S. dollar-pegged tokens USDT and USDC, respectively.
“I think we’re starting to see a disruption in the business models of stablecoin issuers, with proceeds being largely retained for external institutions that don’t really bring value to the ecosystem,” said Adeniyi Abiodun, co-founder of Mysten Labs, an original contributor to Sui. “This revenue can effectively flow right back from the foundation into the Sui ecosystem.”
The coin is issued by Bridge, a stablecoin company acquired by payments giant Stripe last year, and plans were first announced in late 2025. Sui was created by a group of former Meta engineers who worked on the social media company’s abandoned Libra/Diem digital dollar project.
“Currently these funds are not entering the ecosystem; they are indeed flowing out,” Abiodun said. “We are committed to closing the loop. So, real gains from real-world finance are returning to DeFi, creating a flywheel.”
Abiodun said bootstrapping stablecoins is not a onerous task when your network hosts more than $1 trillion in stablecoins such as USDT, USDC and other stablecoins.
“The Sui Foundation now actually owns USDC and other stablecoins, so a lot of that can be converted directly into Sui Dollar. Mysten Labs can do that as well. On top of that, we actually have a lot of investors and hedge funds interested in minting Sui USD. So bootstrapping this is actually pretty easy,” he said.
Abiodun’s former Facebook colleagues and Libra coin partners are the co-founders of Mysten Labs: George Danezis (Chief Scientist), Sam Blackshear (CTO), Evan Cheng (CEO), Kostas Kryptos Chalkias (Chief Cryptozoologist).
