Solayer Introduced First RWA-Backed Stablecoin sUSD on Solana

Sentiment Status: Positive

Solana’s $3.7 billion stablecoin economy ranks sixth among blockchains, trailing Ethereum and Tron by over 90%; with sUSD, Solayer aims to boost network liquidity and draw interest to its RWA offerings.

Solana-based protocol Solayer launched sUSD, a stablecoin backed by U.S. Treasury bills and designed to offer users a secure, income-generating digital asset. Built in collaboration with OpenEden Labs, sUSD is the first Real-World Asset (RWA)-backed stablecoin on Solana.

Solayer's sUSD stands out for combining traditional assets like U.S. Treasury bills with on-chain digital assets. This blend offers a stable and decentralized alternative to fiat-backed stablecoins, which rely on centralized institutions. Solayer’s vision is to democratize finance and provide users with easy access to low-risk, yield-bearing assets.

With a reported 62% increase in market capitalization since early 2024, Solana’s ecosystem is still emerging in the RWA space.

The sUSD protocol operates through a non-custodial Request for Quote marketplace, streamlining the exchange process for users. To begin, users deposit USDC, which is matched to an ideal exchange partner within Solayer. Through the RFQ process, Solayer’s matching engine connects these deposits with tokenized Treasury bills via qualified real-world asset (RWA) tokenizers, ultimately issuing sUSD to the user. Lastly, sUSD offers interest on USDC deposits, which are automatically reflected in users' balances and paid directly in sUSD.

Solayer notes that sUSD’s returns are competitive, with an annualized rate currently estimated at 4.33%, a figure based on the yields from U.S. Treasury bills. The token’s yield mechanism allows users to see their balance grow without the need for staking or other complex DeFi protocols.

Solana’s stablecoin economy is currently valued at $3.7 billion, ranking sixth among blockchain platforms but trailing behind Ethereum and Tron by over 90%. By introducing sUSD, Solayer hopes to attract audiences to Solana’s RWA offerings and add liquidity to the network’s stablecoin pool.

Unlike many fiat-backed stablecoins, sUSD provides users with a decentralized, non-custodial way to earn interest on stable assets. The accessibility of sUSD is a key feature: with a low entry threshold, anyone with a minimum of $5 in USDC can gain exposure to Treasury-backed assets.

While Tether (USDT) and USD Coin (USDC) dominate the stablecoin market, protocols like sUSD appeal to users looking for both security and yield, backed by assets traditionally seen as safe havens.