STBL launched the USST stablecoin on the Stellar blockchain on July 1, 2026, backed by tokenized treasury collateral. The launch came through a partnership between STBL and the Stellar Development Foundation, announced July 1 and shared with Bitcoin.com News. USST runs on STBL's Stablecoin 2.0 infrastructure and gives institutional holders of tokenized treasuries a way to access decentralized finance (DeFi) liquidity without giving up their yield-bearing positions, according to the Stellar Development Foundation.
STBL Enables Collateral Deposits for USST Minting
Market participants deposit qualifying real-world assets (RWAs), such as tokenized treasuries or money market funds, to mint USST. The protocol supports settlement, collateral mobility, and cross-border payments. Initial minting runs on eligible tokenized treasury collateral, starting with USDY. STBL plans to add Franklin Templeton's BENJI as a second collateral option, part of a broader effort to widen the pool of assets institutions can use to back the stablecoin. No launch date has been set for the BENJI collateral integration. STBL has not disclosed initial minting volume for USST on Stellar.
USST Addresses Institutional Liquidity Trade-Off
Institutional investors holding tokenized treasuries and money market funds have long faced a choice between keeping that exposure or converting it into liquidity for DeFi activity. "Institutional investors increasingly hold tokenized treasuries and money market funds, but they still face a trade-off between maintaining DeFi exposure and accessing liquidity," Dr. Avtar Sehra, CEO and co-founder of STBL, remarked on Wednesday. Sehra added: "USST removes that trade-off." STBL was co-founded by Sehra and Reeve Collins, who also founded Tether. Sehra previously founded Nivaura and Kaio.
Stellar Development Foundation Positions Network for RWA Issuance
Stellar has positioned itself as infrastructure for real-world asset issuance and payments, processing billions of operations since launch. The Stellar Development Foundation frames the USST integration as part of that broader push. "As tokenized real-world assets continue to gain momentum, institutions are looking for infrastructure that can support liquidity, settlement, and utility," said Raja Chakravorti, chief business officer of the Stellar Development Foundation.
USST Provides Onchain Liquidity Route for Treasury Holders
For institutional players already holding tokenized treasuries, USST offers a route into onchain liquidity without exiting yield-generating positions. STBL's dual token architecture also underpins other branded stablecoins, including deployments on X-Layer, where USST serves as a reserve asset. The company says it will keep expanding the range of eligible collateral over time, opening the door to more asset issuers and RWA providers joining the network.
FAQ
What did STBL launch on July 1, 2026?
STBL launched the USST stablecoin on the Stellar blockchain on July 1, 2026. USST is backed by tokenized treasury collateral and runs on STBL's Stablecoin 2.0 infrastructure through a partnership with the Stellar Development Foundation.
How does USST allow institutions to access DeFi liquidity?
Market participants deposit qualifying real-world assets, such as tokenized treasuries or money market funds, to mint USST. This gives institutional holders a way to access decentralized finance liquidity without giving up their yield-bearing positions.
Which collateral options does STBL plan to support for USST?
Initial minting runs on eligible tokenized treasury collateral, starting with USDY. STBL plans to add Franklin Templeton's BENJI as a second collateral option, though no launch date has been set for the BENJI integration.
