Catenaa, Tuesday, September 09, 2025- USDD has launched a native deployment on Ethereum, broadening its reach beyond the Tron network.
The move marks the asset’s first expansion since its launch by the Tron DAO Reserve in May 2022, when algorithmic stablecoins came under scrutiny after the collapse of Terra’s UST.
USDD is the algorithmic stablecoin backed by Tron founder Justin Sun.
The launch includes an exclusive airdrop for early adopters and the introduction of sUSDD, a savings version designed to generate interest through decentralized mechanisms.
The team said the Ethereum deployment was fully audited by CertiK and will feature a Peg Stability Module, enabling minting and swapping between USDD, USDT, and USDC with minimal slippage.
Justin Sun said on X that the stablecoin could offer yields up to 12% annually, presenting what he described as a decentralized alternative in the stablecoin market.
Currently, about $460 million worth of USDD circulates, down from $750 million last year, according to CoinGecko.
Despite the expansion, questions remain about USDD’s collateralization and decentralization.
Bluechip, a stablecoin rating agency, continues to assign USDD an “F” grade, estimating real collateral levels near 53%.
Critics have pointed to the Tron DAO Reserve’s reliance on its native TRX token as backing after it removed $750 million in bitcoin reserves in 2024.
The vast majority of stablecoins operate on Ethereum, home to the largest DeFi ecosystem.
The USDD team said the move would expand adoption, liquidity, and utility across a broader base of developers and users.
