This week, Sonic Labs US Treasury-backed USSD introduced stablecoin It is designed to serve as a native source of stable liquidity across the Sonic network and support on-chain financial activity across its ecosystem. It is built on Frax’s GENIUS-compatible frxUSD stablecoin infrastructure, providing Sonic with a network-native stablecoin backed by enterprise-level support.
USSD reserves consist of tokenized treasuries from financial institutions such as BlackRock, WisdomTree, and Superstate. Using Frax’s infrastructure, USSD brings transparent and scalable Treasury-based collateral to the Sonic ecosystem; This collateral aims to support lending, trading and on-chain financial applications, while aligning stablecoin usage with the long-term growth of the network.
It is backed by US Treasury bills and can be minted at a 1:1 ratio with USDC, ensuring seamless conversion from USDC. Using Frax’s infrastructure, USSD can be converted back to USDC on any CCTP-supported chain, providing a familiar and reliable entry and exit facility for stable value within the Sonic ecosystem.
Subject to applicable KYC/AML requirements and issuer approval, eligible users can transfer stablecoins directly to their bank accounts in exchange for US dollars. This launch represents the first phase of a broader rollout to establish it as a compatible stablecoin that supports the vertical integration initiative at Sonic.
USSD was designed to be accessible from the beginning, as part of Sonic’s vertically integrated approach, so users can mint and use the stablecoin without caps. Using Layer Zero interoperability, USSD allows users to transfer USSD from 10+ chains directly to Sonic. As adoption increases, revenue from issuance and use is intended to flow back into the Sonic ecosystem, providing buybacks, incentives, and more. Creating and leveraging new revenue streams beyond the S token to support this growth is important to Sonic’s long-term value.
Samuel HarcourtThe main contributor from Sonic Labs said:
“USSD is a fundamental step in our vertical integration initiative. USSD will allow Sonic to leverage enterprise returns at the base layer and build a more resilient ecosystem with external incentives and buybacks.
“By offering a network-native stablecoin backed by real-world assets, Sonic Labs provides stable liquidity that supports long-term growth while maintaining the transparency and reliability that users expect.”
Sam KazemianFrax founder and CEO added:
“Sonic is building core primitive assets that prioritize the capital efficiency of their network. A native stablecoin is a fundamental part of this. Frax white label stablecoins like USSD are built on first principles to be fully backed, transparent, and pass the underlying Treasury yield to DeFi partners. Our infrastructure gives Sonic a productive underlying asset with cross-chain access, fiat onramps, and our five-year security track record.”
