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SUI Group, a Nasdaq-listed digital asset treasury, has announced plans to launch two new stablecoins on the Sui blockchain.
Author: Sahil Thakur
2nd October 2025 – SUI Group, a Nasdaq-listed digital asset treasury, has announced plans to launch two new stablecoins on the Sui blockchain. The move signals an attempt to expand its role from investor to infrastructure builder, but also raises concerns amid rising regulatory pressure on the digital asset treasury (DAT) sector.
SUI Group, formerly Mill City Ventures, made headlines earlier this year after raising $450 million to invest in the SUI ecosystem. Since then, it has accumulated over $330 million worth of SUI tokens and maintained a steady buying strategy.
Now, the group is entering uncharted territory. In partnership with Ethena Labs, it plans to launch two dollar-pegged stablecoins by the end of 2025: suiUSDe, which will offer yield to holders, and USDi, which will not.
The company claims the initiative will bring new utility to the SUI blockchain and create a central liquidity layer for the ecosystem. It describes the effort as a step toward building a “SUI Bank”, a long-term vision that positions the treasury as a core infrastructure provider.
While SUI Group frames the plan as visionary, several challenges loom.
The broader DAT sector is under pressure. Market values are down. Stock performance is weak. Even large firms are struggling to maintain traction. For SUI Group, launching may be an attempt to stand out in an increasingly crowded and volatile space.
More critically, the stablecoins come as the United States ramps up scrutiny of digital asset treasuries. Just days ago, regulators announced a sweeping investigation into insider trading across DAT firms. Meanwhile, the GENIUS Act would require all stablecoin issuers to back their tokens with U.S. Treasuries – something SUI Group may find difficult, given its heavy SUI exposure.
Critics have also flagged the timing. Launching a token designed to add value to a network the company is heavily invested in could raise conflict-of-interest concerns.
If successful, the SUI stablecoins could shift stablecoin activity on the Sui network away from incumbents like USDC. They could also validate a new model for DATs, one where firms build financial infrastructure around the tokens they hold.
This isn’t the first time stablecoin competition has emerged. Several dollar-pegged tokens are slated for launch across other blockchains as well. Sui, a Layer 1 proof-of-stake network, has positioned itself as an alternative to Ethereum and Solana, but adoption remains limited.
Ethena Labs, SUI Group’s partner, specializes in synthetic dollar issuance, which could help address some regulatory concerns but that remains uncertain.
The SUI Group stablecoin launch could prove pivotal for the entire DAT space. If the project succeeds, it may inspire other firms to follow a similar playbook. If it fails, it could reinforce skepticism about treasuries overstepping into protocol design and financial issuance.
For now, the market remains cautious. SUI’s token performance has been uneven in recent weeks, and investor sentiment is mixed. What happens next will depend not just on execution, but also on how regulators and users respond.
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