Crypto Billionaire Justin Sun’s USDD Stablecoin Launches on Ethereum – Can it Overtake Tether?

Justin Sun’s USDD stablecoin officially launched on Ethereum, expanding beyond its native TRON blockchain to challenge Tether’s ￰2￱ Ethereum launch coincides with the network’s stablecoin supply reaching a record $165 billion , creating an opportune moment for USDD to tap into the largest decentralized finance ecosystem while Tether maintains its $169 billion market cap lead. USDD’s multi-chain deployment comes with an airdrop campaign offering up to 12% APY rewards for Ethereum holders, though the token faces strong headwinds given Tether’s 367 times larger market ￰3￱ news: #USDD is now natively LIVE on Ethereum— with an Exclusive Airdrop launching soon!

A new era begins as #USDD expands beyond TRON, bringing stability & scalability to the largest smart contract ecosystem. Here’s what’s coming your way: Zero-slippage swaps with… ￰4￱ — USDD 2.0 (Ethereum Native Live Airdrop Coming) (@usddio) September 8, 2025 USDD’s Algorithmic Model Faces Ethereum Test The TRON DAO Reserve’s stablecoin operates through overcollateralization, maintaining a 204.5% backing ratio, primarily supported by TRX tokens after Sun removed $726 million in Bitcoin collateral in ￰5￱ USDD stablecoin has seen the removal of 12,000 Bitcoin, valued at approximately $726 million, from its collateral. #JustinSun #USDD ￰0￱ — ￰6￱ (@cryptonews) August 23, 2024 Following a comprehensive CertiK audit, the Ethereum deployment introduces a Peg Stability Module, which allows seamless 1:1 swaps with USDT and USDC to address liquidity ￰7￱ mechanism builds on lessons from Terra’s algorithmic collapse, though USDD weathered major depegging events, including drops to $0.983 during Terra’s May 2022 implosion and $0.97 during FTX’s November collapse .

Meanwhile, the launch features tiered rewards ranging from 12% at low total value locked to 6% as adoption increases, with distributions occurring every eight hours through the Merkl Dashboard based on daily ￰8￱ contract address went live with immediate USDT and USDC swap ￰9￱ plans include launching sUSDD as an interest-bearing version for passive yield ￰10￱ DeFi integration, USDD’s Ethereum presence spans 10 blockchain networks, including BSC, Avalanche, and Polygon, supported by cross-chain bridges from Stargate Finance, Symbiosis, and ￰11￱ deployment coincides with TRON’s broader ecosystem growth, including SunSwap maintaining $3 billion in monthly volume and JustLend experiencing a 23% increase in borrowing transactions compared to 2024 ￰12￱ Confronts Tether’s Trillion-Dollar Ecosystem Tether’s supremacy appears virtually ￰13￱ daily trading volume exceeds USDD’s by a factor of 23,500 while maintaining near-universal exchange support across centralized and decentralized ￰14￱ July, CryptoQuant data revealed that TRON surpassed Ethereum in USDT liquidity with $80.8 billion versus $73.8 ￰15￱ dethrones Ethereum in USDT dominance, processing more stablecoin transactions. #Crypto #DeFi ￰1￱ — ￰16￱ (@cryptonews) July 28, 2025 USDT now processes over $24.6 billion daily on TRON alone through 2.3 to 2.4 million transactions, dwarfing most competing stablecoins’ total volumes across all ￰17￱ infrastructure advantage extends to reserve backing, where Tether claims 75.86% ￰18￱ bills and 12.09% overnight repos, different from USDD’s volatile TRX-heavy collateral ￰19￱ Stablecoin Reserve () Meanwhile, Binance currently commands 67% of all exchange stablecoin reserves with $44.2 billion, including $37.1 billion in USDT and $7.1 billion in ￰20￱ the stablecoin sector shows increasing fragmentation as Chainalysis reports $2.5 trillion in transaction volume sector-wide, with specialized players targeting specific ￰21￱ far, emerging competitors include MetaMask’s planned mUSD for wallet integration and Paxos’s USDH proposal offering 95% revenue sharing to token ￰22￱ stablecoins have also demonstrated rapid growth trajectories, with EURC expanding from $47 million to $7.5 billion in euro-denominated transactions over the past year.

Similarly, PYUSD accelerated from $783 million to $3.95 billion over the same period. Additionally, regulatory clarity from the EU’s MiCA and the ￰23￱ Act creates opportunities for compliant alternatives to capture market share from established players facing ongoing ￰24￱ regulatory environment benefits leading stablecoins like USDC, capturing institutional corridors, USDT dominating emerging markets as digital cash, and newer entrants targeting specialized use ￰25￱ projections suggest the sector is set to continue growing and could reach $1 trillion in annual payment volume by 2028 , with Citigroup forecasting even more massive expansion to over $2 trillion market cap by 2030 .