Definition, History, and Current Status of USTC (Terra Classic USD)
Terra Classic USD (USTC), formerly known as TerraUSD (UST), is a decentralized algorithmic stablecoin built on the Terra Classic blockchain, originally designed to maintain a 1:1 peg with the U.S. dollar.However, in May 2022, USTC experienced a severe de-pegging event, with its value falling far below $1, causing widespread shockwaves across the cryptocurrency market. Since then, USTC has ceased to function as a stablecoin in the true sense of the term; its dollar-pegging mechanism has failed, and it is currently traded primarily as a speculative token in the market.
As of July 19, 2026, the price of USTC was approximately 0.0054 USDT, with a 24-hour trading volume of about 33.5M USDT, demonstrating its high volatility.Although the Terra Classic community continues to attempt to restore USTC’s value through burning mechanisms and new proposals, its price trajectory remains highly uncertain.On the regulatory front, some exchanges have delisted tokens such as USTC for users in the European Economic Area in accordance with regulations like the EU’s Markets in Crypto-Assets (MiCA) regulation; for example, KuCoin ceased related trading services in March 2026.
The Theoretical Advantages of Stablecoins in Supply Chain Management
Before discussing the potential applications of USTC, it is first necessary to understand the theoretical advantages that true stablecoins can bring to supply chain management. These advantages are primarily reflected in the following aspects:
- Instant Cross-Border Payments: Stablecoins enable nearly instant cross-border payments to suppliers. Transaction fees are typically far lower than those of traditional bank wire transfers, reducing settlement times from several days to just a few minutes and significantly improving suppliers’ cash flow.
- Automated Invoice Financing: Suppliers can tokenize approved invoices to use as collateral for loans or sell them on decentralized markets to obtain instant liquidity. The entire process can be automated via smart contracts, improving efficiency and reducing labor costs.
- Enhanced Transparency and Traceability: Blockchain technology provides a shared, tamper-proof transaction ledger, enhancing transparency, accountability, and trust within the supply chain. This helps track product origins, reduce fraud, and enable real-time audits.
- Reducing Costs and Improving Efficiency: By eliminating intermediaries and automating processes, stablecoins can lower transaction fees, shorten cash conversion cycles, and reduce potential disputes.
- Addressing Payment Pain Points: Stablecoins effectively address the issues of slow speeds and high costs associated with cross-border payments in traditional finance, particularly in international remittances and business-to-business (B2B) payment scenarios.
Why USTC Is Currently Unsuitable for Supply Chain Management
Although the advantages of stablecoins described above hold great promise for the supply chain sector, given USTC’s current state, it is not suitable as a payment or financing tool in supply chain management. The core reasons are as follows:
- Lack of Stability: The primary requirement for payment and store-of-value tools in supply chain management is stability. USTC has severely deviated from its peg and experiences extreme price volatility, completely losing its attributes as a “stablecoin” and failing to provide the reliable medium of value required by supply chains.
- High Speculative Nature: USTC is currently traded primarily as a speculative asset, with its price heavily influenced by market sentiment and community proposals—a situation that runs counter to the principles of certainty and risk aversion sought in supply chain management.
- Regulatory Uncertainty: Regulatory attitudes toward unpegged stablecoins like USTC are becoming stricter in some regions, increasing the risks associated with their use in supply chain scenarios with high compliance requirements.
Therefore, until USTC restores its dollar peg and achieves true stability, its application in supply chain management is impractical and extremely risky.
Other Entities Associated with the Name “USTC”
It is worth noting that the name “USTC” may also refer to other entities that have made tangible contributions to the supply chain field but are unrelated to Terra Classic USD:
- University of Science and Technology of China (USTC): Its School of Management has achieved results in research on innovative decision-making in supply chains and offers programs related to logistics management (supply chains).
- UST (a digital solutions company): This company uses predictive analytics tools to enhance supply chain visibility and help businesses build resilient supply chains. Its services include inventory optimization, warehouse management, transportation management, and omnichannel commerce, all aimed at improving supply chain efficiency and resilience.
Conclusion
In summary, while true stablecoins demonstrate significant potential for optimizing supply chain management, Terra Classic USD (USTC) no longer possesses the characteristics of a stablecoin following its de-pegging in 2022. Its high volatility, speculative nature, and regulatory uncertainty render it incapable of meeting the supply chain management’s need for a stable store of value and medium of exchange at this stage.In the future, unless USTC can restore its dollar peg through effective mechanisms and regain market trust, its practical value in supply chain management will be negligible. When discussing related applications, it is essential to distinguish between the cryptocurrency USTC and other entities with the same name.
