STBL Launches USST Stablecoin on Stellar, Backed by Tokenized Treasuries

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STBL Launches USST Stablecoin on Stellar, Backed by Tokenized Treasuries
PrimeXBT Editorial Team
Reviewed by PrimeXBT

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STBL has launched USST, an institutional-grade stablecoin backed by real-world assets, on the Stellar network. The token lets holders of tokenized treasuries tap DeFi liquidity without giving up their yield-bearing positions, and STBL plans to widen the collateral it accepts over time.

STBL launched USST on the Stellar network on July 1, 2026, an institutional-grade stablecoin backed by real-world assets such as tokenized treasuries. The token runs on STBL's Stablecoin 2.0 infrastructure through a partnership with the Stellar Development Foundation, and it aims to give institutional holders of tokenized treasuries a route into decentralized finance without giving up their yield-bearing positions.

How USST works

Market participants deposit qualifying real-world assets, 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 says it 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 token.

The trade-off STBL says it removes

Institutional investors holding tokenized treasuries and money market funds have long faced a choice: keep that exposure, or convert it into liquidity for DeFi activity. STBL says USST ends that choice. According to Bitcoin.com News, STBL CEO and co-founder Dr. Avtar Sehra said: "USST removes that trade-off."

STBL was co-founded by Sehra and Reeve Collins, who also founded Tether. The company's dual-token architecture underpins other branded stablecoins, including deployments on X-Layer, where USST serves as a reserve asset.

What comes next

Stellar has positioned itself as infrastructure for real-world asset issuance and payments, and the Stellar Development Foundation frames the USST integration as part of that push. The network has processed billions of operations since launch.

STBL says it will keep expanding the range of eligible collateral, opening the door to more asset issuers and RWA providers. No launch date has been set for the BENJI integration, and STBL has not disclosed initial minting volume for USST on Stellar.

Source: Bitcoin.com News

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