Sonic Labs Launches Native Dollar-Pegged Stablecoin USSD
A native stablecoin was launched in the Sonic blockchain ecosystem, designed to create an internal dollar-based settlement layer for trading, lending, and payment use cases, as well as to facilitate liquidity movement and capital redistribution between blockchain ecosystems.
Sonic Labs announced the launch of the native dollar-pegged stablecoin US Sonic Dollar (USSD) on Sonic, built on the frxUSD infrastructure by Frax. The stablecoin is positioned as the core settlement asset of the Sonic ecosystem. USSD is integrated at the network level and is intended for trading, lending, settlements, and use within decentralized finance (DeFi) protocols.
USSD is fully backed by high-quality short-term dollar-denominated assets at a 1:1 ratio. The reserves follow the Frax model and include tokenized U.S. Treasuries and other instruments provided by major financial organizations, including:
- BlackRock;
- Superstate;
- WisdomTree.
In the future, as the reserve pool expands, additional providers will also be involved in collateral backing. This approach combines operations in the public blockchain space with a conservative collateral structure. Going forward, subject to customer identification requirements (KYC/AML) and issuer approval, users will be able to redeem USSD directly for U.S. dollars.
USSD issuance is carried out through smart contracts without intermediaries and without fees. Tokens are minted at a 1:1 ratio to the deposited asset and aren’t subject to issuance fees. Approved dollar-denominated and tokenized Treasury instruments can be used as collateral for minting, including:
- USDC;
- USDT;
- PYUSD;
- USDB;
- BUIDL;
- USTB;
- WTGXX and others.
For example, a user can deposit USDC in one of the supported networks and receive USSD directly on the Sonic network. At launch, support is implemented for more than 10 blockchains.
USSD can be redeemed at a 1:1 ratio through supported dollar assets on the selected network. The redemption mechanism is implemented via smart contracts and is designed for:
- liquidity transfers between networks;
- settlements and treasury management for protocols;
- capital redistribution between ecosystems;
- liquidity migration without dependence on fragmented markets.
Integration with networks supporting CCTP is also planned, simplifying exchanges between USSD and widely used dollar-based blockchain instruments.
Sonic describes stablecoins as the “money layer” of the blockchain economy, since trading volumes, credit markets, and settlement routes are largely built around dollar liquidity. The launch of a native stablecoin is intended to concentrate liquidity within the ecosystem rather than moving it into external assets.
USSD is viewed as part of Sonic’s vertical integration strategy, in which key financial instruments within the network operate as a unified system. The stablecoin is expected to become the base asset for:
- trading pairs on decentralized exchanges;
- collateral and loans in lending protocols;
- margin collateral for derivatives;
- payments and settlements;
- storage of protocol treasury funds.
The yield generated from the reserve assets backing USSD is planned to be directed toward ecosystem development, including incentive programs and buyback mechanisms as the coin’s adoption grows.
The frxUSD stablecoin, which underlies US Sonic Dollar, is a rebranding of the FRAX dollar stablecoin created by the Frax Finance team. The asset was introduced in early 2025 as the first stablecoin fully backed by shares of the tokenized treasury fund BlackRock USD Institutional Digital Liquidity Fund (BUIDL).
