USDD, the algorithmic stablecoin backed by TRON founder Justin Sun, has officially launched on the Ethereum network, marking a significant step in its push to become a multi-chain asset.
In a statement shared on Monday, the USDD team described the move as “a new era” for the project, highlighting Ethereum’s vast ecosystem of developers, liquidity, and decentralized finance (DeFi) protocols. Previously confined to the TRON blockchain, the stablecoin will now be accessible to users on Ethereum, one of the most widely used smart contract platforms.
USDD
Airdrop and New Savings Option
To celebrate the launch, USDD will roll out an exclusive airdrop for early adopters starting Tuesday. In addition, the team announced plans for sUSDD, a savings-focused version of the stablecoin designed to allow users to earn interest “through a decentralized and transparent savings system.”
Justin Sun also took to X (formerly Twitter) to promote the development, saying the stablecoin could offer yields of up to 12% annual percentage yield (APY).
“From now on, everyone has a decentralized choice when it comes to stablecoins! USDD is growing!” he wrote.
The decentralized stablecoin USDD has finally arrived on Ethereum! From now on, everyone has a decentralized choice when it comes to stablecoins! USDD is growing! Swap for USDD and join mining activities with up to 12% APY! https://t.co/BnOdt3ZfHL
— H.E. Justin Sun 👨🚀 (Astronaut Version) (@justinsuntron) September 8, 2025
How USDD Works
Launched in May 2022, USDD aims to maintain its peg to the U.S. dollar using smart contracts, over-collateralization, and market mechanisms. The Ethereum deployment introduces a Peg Stability Module, enabling users to mint or swap USDD against other major stablecoins such as USDT and USDC with little to no slippage. This is intended to provide strong liquidity and price stability from the outset.
The launch comes after a full audit by blockchain security firm CertiK. However, USDD has faced ongoing scrutiny. In 2024, the TRON DAO Reserve shifted much of USDD’s collateral to TRX, TRON’s native token, after pulling nearly $750 million in bitcoin from reserves. Independent stablecoin tracker Bluechip currently gives USDD a failing grade, citing its collateralization ratio at roughly 53%—well below traditional stablecoin standards.
Market Position
According to CoinGecko, about $460 million worth of USDD is currently in circulation, down from around $750 million a year ago. While Ethereum remains the dominant hub for stablecoin issuance, TRON has emerged as a strong player, especially for Tether transactions. By expanding onto Ethereum, the USDD team hopes to reach a broader base of users while promoting transparency and sustainable yields.
