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Sonic Labs Launches USSD, a 1:1 Treasury-Backed Stablecoin With Cross-Chain Minting

Tokenized Treasuries with Frax infrastructure aim to concentrate dollar liquidity on Sonic.

Overview

  • USSD is live as a network-native USD stablecoin on Sonic with permissionless minting at a 1:1 ratio via non-custodial smart contracts and no minting fees.
  • Reserves consist of short-duration, tokenized U.S. Treasury products from BlackRock’s BUIDL, Superstate’s USTB, and WisdomTree’s WTGXX held with regulated custodians.
  • Cross-chain support allows deposits from more than 10 networks, including Ethereum, Base and Arbitrum, using LayerZero and Frax cross-chain tooling to deliver USSD on Sonic.
  • The stablecoin is compatible with USDC, enabling conversions and redemptions across chains through Chainlink’s Cross-Chain Transfer Protocol.
  • Sonic plans to route reserve yield toward buybacks and ecosystem incentives over time, and future fiat conversion paths would require KYC and issuer approval.