The Context Behind the Rise of Protocol-Native Stablecoins
In recent years, the cryptocurrency market has seen a surge in stablecoin solutions directly spearheaded by public chains or ecosystems. For instance, the Sui ecosystem launched its native stablecoin USDsui in March 2026, utilizing reserve yields to buy back its native token; meanwhile, the Polkadot community also passed a proposal in September 2026 to advance the native decentralized stablecoin dotUSD, establishing corresponding liquidity pools for it. These developments indicate that building native stablecoins has become a crucial strategy for major public chains and protocols to strengthen their ecosystem closed-loop.
Gaining Control Over Distribution Channels and Liquidity Supply
Traditional public chains rely heavily on third-party issued centralized stablecoins to support trading and lending demands within their ecosystems. However, leaving the core payment and settlement medium to external protocols means that the initiative over ecosystem liquidity is dictated by others. Launching protocol-native stablecoins enables protocols to directly control distribution channels, ensuring that DeFi applications, lending markets, and derivatives trading within the ecosystem have access to a stable and autonomous liquidity supply, thereby mitigating systemic risks caused by external asset volatility or regulatory shifts.
Capturing Yields and Feeding Back into the Ecosystem
By designing diversified reserve asset structures, protocol-native stablecoins can generate continuous yield capture capabilities for issuers or ecosystems. For example, some stablecoin solutions invest reserve assets in real-world assets (RWAs) or participate in on-chain staking, with the generated yields directly used to buy back and burn native tokens or injected into ecosystem funds to incentivize developers and users. This model not only strengthens the value support of the stablecoin itself but also forms a value-feedback loop favorable to the native token.
Reducing Dependence on External Centralized Entities
In a complex macroeconomic and regulatory environment, over-reliance on a single or a few centralized stablecoins poses potential compliance and operational hazards for public chains. By introducing multi-asset backing or decentralized designs, protocols can build more autonomous and controllable underlying payment infrastructure. Whether integrating multiple assets for risk diversification or utilizing tools like synthetic dollars and tokenized U.S. Treasuries (as demonstrated by the scale effects of similar assets in the market), multi-party practices continue to prove that building an endogenous and resilient measure of value is a necessary path for public chains to mature.
