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Sonic Labs Launches USSD, a Treasury-Backed Stablecoin Built on Frax for Cross-Chain Liquidity

The network-native dollar uses permissionless minting to pull capital into Sonic’s DeFi rails.

Overview

  • USSD is live as a USD-pegged token backed 1:1 by tokenized short-term U.S. Treasuries tied to BlackRock’s BUIDL, Superstate’s USTB, and WisdomTree’s WTGXX, with assets held by regulated custodians.
  • Minting occurs through non-custodial smart contracts on Sonic at a one-to-one ratio with zero fees, with supported deposits including USDC, USDT, PYUSD, USDB, BUIDL, USTB, and WTGXX.
  • LayerZero powers cross-chain minting from more than 10 networks, including Ethereum, Base, and Arbitrum, allowing users to deposit on other chains and receive USSD on Sonic.
  • USSD offers conversion paths with Circle’s USDC via Chainlink’s Cross-Chain Transfer Protocol, enabling redemptions into familiar dollar rails across supported chains.
  • Built on Frax’s GENIUS/frxUSD infrastructure, USSD is positioned as Sonic’s core liquidity layer, with Sonic stating that reserve yield is intended to support buybacks and ecosystem incentives over time.