SUI Group Plans Two Stablecoins On Sui Blockchain

SUI Group To Launch Two Stablecoins On Sui Blockchain In Bold Gamble

SUI Group, a digital asset trust (DAT) formerly known as Mill City Ventures, has announced plans to release two stablecoins on the Sui blockchain in partnership with Ethena Labs. The tokens are expected to debut by late 2025, aiming to enhance utility and liquidity across the Sui ecosystem.

The move marks an ambitious step as SUI Group seeks to become the first DAT to issue stablecoins, with a long-term vision of building a “next-generation SUI Bank” that would serve as a central liquidity hub for the network.

Background: SUI Group’s Expansion

In July, the firm rebranded as SUI Group and raised $450 million to invest in SUI tokens. A month later, it disclosed a $330 million reserve, continuing to accumulate holdings since then.

Currently, USDC is the dominant stablecoin on the Sui blockchain. However, SUI Group hopes its new assets — suiUSDe and USDi — will reshape adoption models, creating a new use case for altcoin DATs.

Chairman Marius Barnett stated: “SUI Group is moving beyond a traditional DAT to become an infrastructure builder with a long-term vision of creating a next-gen SUI Bank. We believe this initiative will add a powerful mechanism to boost liquidity, utility, and long-term value on Sui.”

Challenges: Regulation And Market Risks

Despite its bold vision, the project faces serious challenges:

 - The DAT sector is under pressure, with shrinking mNAVs and declining share performance, even for major players.

 - Regulatory uncertainty in the US poses a threat. The GENIUS Act requires issuers to back stablecoins with US Treasuries, raising doubts about SUI Group’s ability to comply if most of its capital is tied up in tokens.

 - US regulators recently launched investigations into DAT companies for potential insider trading. The timing of SUI Group’s announcement has fueled skepticism, especially as it seeks to enhance the value of assets it already heavily holds.

The Road Ahead: Opportunity Or Collapse?

If successful, the plan could showcase a new use case for altcoin-based DATs, encouraging other projects to issue stablecoins as a way to strengthen their ecosystems.

However, failure due to regulatory oversight or market logic could deal a serious blow to investor confidence in DATs worldwide — especially given that SUI token prices have shown little strength in recent weeks.

For now, SUI Group’s stablecoin gamble stands at a crossroads: it could either cement Sui’s role in the blockchain economy or end as a cautionary tale for ambitious digital asset funds.

Disclaimer: The content above reflects the author’s personal views and does not represent any official position of Cobic News. The information provided is for informational purposes only and should not be considered as investment advice from Cobic News.