STBL Launches USST Stablecoin on Stellar as Institutions Seek Real-World Asset Liquidity

The launch, announced on July 1 and shared with Bitcoin.com News, is the result of a partnership between STBL and the Stellar Development Foundation. USST works on STBL Stable coin 2.0 and gives institutional holders of tokenized treasures a way to access decentralized finance (DeFi) liquidity without giving up their profitable positions.

How the USST works

Market participants deposit eligible real assets ( RWA), such as tokenized treasury bills or money market funds, to create USST. The protocol supports settlement, collateral mobility and cross-border payments.

The initial minting will be on eligible tokenized cash collateral, starting with USDY. STBL announces plans to add Franklin Templeton’s BENJI as a second collateral option, part of a broader effort to expand the pool of assets that institutions can use to support the stable coin.

A compromise facing institutions

Institutional investors holding tokenized Treasuries and money market funds have long faced a choice. They could keep this exposure or convert it into liquidity For Challenge activity. STBL says USST removes this choice.

“Institutional investors are increasingly holding Treasuries and money market funds, but they still face a trade-off between keeping Challenge exposure and access liquidity“, remarked Dr Avtar Sehra, CEO and co-founder of STBL on Wednesday.

Sehra added:

“USST removes this trade-off.”

STBL was co-founded by Sehra and Reeve Collins, who also founded Tether. Sehra previously founded Nivaura and Kaio.

Stellar’s role in the RWA push

Stellar has positioned itself as an infrastructure for real-world asset issuance and payments, processing billions of transactions since its launch. The Stellar Development Foundation is overseeing the integration of the USST as part of this broader initiative.

“As real-world token assets continue to gain momentum, institutions are looking for infrastructure that can support liquiditysettlement and public services,” said Raja Chakravorti, business director of the Stellar Development Foundation.

What this means for traders and investors

For institutional players already holding tokenized treasuries, USST offers a path to onchain liquidity without exiting yield-generating positions. This is important for asset managers who evaluate participation in DeFi against the returns they already receive from treasury exposure.

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 continue to expand the range of eligible collateral over time, opening the door to more asset issuers and RWA providers joining the network.

No launch date has been set for the integration of BENJI guarantees. STBL has not disclosed the initial minting volume for USST on Stellar.