- Main event is USDD’s launch on Ethereum.
- Justin Sun involved, airdrop incentivizes adoption.
- Market competition with Tether emerges.
Justin Sun’s USDD stablecoin launched directly on Ethereum on September 8, 2025, introducing native minting and USDT/USDC swaps.
This move aims to challenge Tether’s dominance, offering up to 12% APY incentives to increase adoption.
Justin Sun’s stablecoin launched on Ethereum, including direct minting and swaps. A tiered airdrop campaign offers 12% APY. The launch aims to compete with Tether, but USDD remains smaller. As Justin Sun, Founder of TRON, states, “From now on, everyone has a decentralized choice when it comes to stablecoins! USDD is growing! Swap for USDD and join mining activities with up to 12% APY!” beincrypto.com.
Justin Sun and TRON DAO drive the USDD expansion. A CertiK audit ensured peg stability, enabling safe swaps with USDT and USDC on Ethereum. USDD is poised for growth with these strategic choices.
Ethereum’s DeFi sector and LP protocols are impacted by USDD’s introduction. TRX collateral supports USDD, influencing its collateral ratio and potential risks. Liquidity is bolstered by the Peg Stability Module.
Financial effects include a collateralization ratio of 204.5%, primarily in TRX. Despite incentives, concerns linger due to past depegs and collateral withdrawals, as exemplified by Bluechip’s rating downgrade.
No official reports mention institutional investments or grants for USDD’s launch. Community feedback suggests optimism for increased competition but worries about collateral transparency persist.
Regulatory and technological outcomes remain speculative as no statements from the SEC or other bodies have been made. Historical trends show competition from other stablecoins, yet Tether maintains dominance due to its robust collateralization.
