USDD Launches on Ethereum: $460M Stablecoin Targets DeFi Expansion

16 hours ago

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What makes USDD's expansion to Ethereum significant?

How does USDD compare to other stablecoins in the Ethereum ecosystem?

What opportunities does moving onto Ethereum open up for USDD?

USDD Launches on Ethereum: $460M Stablecoin Targets DeFi Expansion — Image source: Unblock Media

USDD stablecoin officially launches natively on Ethereum.
New features, including a Peg Stability Module and savings tool, aim to boost adoption in Ethereum's DeFi ecosystem.

The algorithmic stablecoin USDD, backed by Tron founder Justin Sun, has expanded its ecosystem by launching natively on the Ethereum blockchain. As reported by The Block on September 8, 2025, this development represents a significant move in USDD’s efforts to establish itself as a widely adopted multi-chain stablecoin. By targeting Ethereum’s thriving decentralized finance (DeFi) ecosystem, the stablecoin aims to leverage the network’s deep liquidity and vast user base.

The native Ethereum integration introduces mechanisms designed to enhance both stability and user interest. A Peg Stability Module (PSM) has been implemented, facilitating efficient minting and swapping of USDD with other stablecoins, such as USDT and USDC, to minimize slippage during transactions. Additionally, users can access a new savings feature, sUSDD, allowing them to earn interest on their holdings. To encourage adoption, USDD has unveiled an exclusive airdrop for new users in conjunction with the Ethereum launch.

However, concerns about USDD’s collateralization and decentralization remain pertinent. Bluechip, a stablecoin rating agency, recently assigned USDD its lowest available rating, citing a collateralization ratio of approximately 53%, well below industry standards for algorithmic stablecoins. Furthermore, questions have been raised about USDD’s governance structure, which is managed by a decentralized autonomous organization (DAO). Critics have pointed to the influence that Justin Sun holds over the stablecoin, notably after the Tron DAO Reserve shifted its primary reserves from Bitcoin to Tron tokens (TRX) in August 2024.

Initially launched on the TRON blockchain in May 2022, USDD’s circulation has grown steadily, with approximately $460 million currently in supply. The move to Ethereum intends to broaden the stablecoin’s adoption across multiple chains while addressing liquidity needs in larger DeFi communities.

As of September 8, 2025, 16:09 UTC, USDD is trading at $1, reflecting a 0.025% change within the past 24 hours, according to MarketCap. Its trading volume has risen by 11.524% over the same period, suggesting a positive response to the Ethereum deployment. At the same time, Ethereum (ETH) is priced at $4,364.83, marking a 1.501% increase in 24-hour trading volume as of 16:08 UTC. TRON (TRX) holds steady at $0.334, reflecting a 1.327% change in trading volume during the same timeframe.