SUI Group Bets Big with Dual Stablecoin Launch Amid Market Pressure

SUI Group, formerly Mill City Ventures, is making waves in the digital asset treasury (DAT) sector with plans to launch two stablecoins on the Sui blockchain by the end of 2025. The initiative, developed in partnership with Ethena Labs, marks an ambitious attempt to expand utility and strengthen liquidity across the Sui ecosystem.

After raising $450 million and building a $330 million token reserve, SUI Group is pushing beyond the traditional DAT model. The planned stablecoins—suiUSDe and USDi—are positioned as alternatives to USDC, currently the dominant stablecoin on Sui. Executives argue this experiment could establish a new benchmark for altcoin-focused treasuries. Chairman Marius Barnett described the initiative as a step toward creating a “SUI Bank,” envisioned as a central liquidity hub for the network.

The strategy, however, faces significant obstacles. The broader DAT sector has struggled with falling market values and shrinking investor confidence. By pursuing a bold pivot into stablecoins, SUI Group may be seeking to differentiate itself in a contracting industry. Yet the timing raises concerns, especially as U.S. regulators have recently intensified scrutiny of DAT firms for insider trading allegations. Adding to the uncertainty, the GENIUS Act requires stablecoin issuers to hold reserves in U.S. Treasuries, raising questions about how SUI Group will secure compliant reserves while heavily invested in its native token.

The outcome of this gamble could redefine the role of DATs. If successful, it may inspire other firms to leverage token stockpiles to shape blockchain ecosystems. Failure, however, could signal deeper instability in the sector and highlight regulatory risks for experimental stablecoin models. With Sui’s token price already under pressure, the coming year may determine whether SUI Group’s bold move reshapes the landscape—or becomes a cautionary tale.