Looking back at the recently concluded year of 2025, one of the few narratives that remained "strong throughout the year" in the Web3 world is stablecoins.

Traditional finance and CEX giants, DeFi powerhouses, and emerging yield protocols have all entered the fray—some leveraging resources to focus on payments, connecting Web2 and offline traffic, while others concentrate on innovation, providing more flexible and reliable financial operation spaces and mediums for native crypto users.

The competition among stablecoins is reminiscent of the "Hundred Regiments Offensive" during the internet era: capital is exerted, and users reap the benefits.

On December 12, USDD launched on Binance Wallet Yield+, introducing a 30-day incentive program of 300,000 USDD, with sUSDD TVL surpassing 150 million dollars in just one day, showing a strong momentum to "rush to meet year-end KPIs."

Odaily Planet Daily took this opportunity to discuss with Yvonne Chia, the head of communications for USDD, covering topics such as the capacity and current saturation of the stablecoin industry, user-side selection considerations, and the advantages and potential of USDD. Below are the highlights of the Q&A:

Q1 Please briefly introduce yourself, covering your work experience since entering the industry and your main responsibilities at USDD. What is the scale of the entire department, and what are the internal divisions of labor?

I am Yvonne Chia, currently the head of communications for USDD, dedicated to closely connecting the project vision with the global community. I have been closely following the latest developments in the crypto industry and firmly believe that stablecoins are key to building a stronger and more inclusive financial system.

Q2 From the internal perspective of a stablecoin "practitioner," what is the expected industry scale (capacity) of stablecoins by the end of 2026?

The growth forecast for stablecoins has always been very optimistic. For example, recently, U.S. Treasury official Scott Bessent predicted that the market size could reach $3 trillion by 2030, while Citigroup estimated $4 trillion. These predictions highlight the enormous untapped potential in this field. We see a growing demand for a reliable digital dollar and believe that stablecoins like USDD will play a key role in the continuous development and maturation of the ecosystem.

Q3 In the long term, what is the ceiling for the demand for stablecoins? What key factors determine the growth rate?

Rapid growth often comes with higher risks. Some stablecoin projects may overlook risk management and capital adequacy in their pursuit of scale and returns, leading to liquidity issues or decreased stability, which in turn affects user confidence. Stablecoins need to find a balance between price stability and reasonable returns. Only projects with sound risk control, sufficient collateral, and transparent operations can maintain this balance, earn long-term trust, and continue to thrive in a competitive and ever-changing market.

Q4 Currently, has the stablecoin market entered a red ocean? Are there too many brands from issuers, competing for existing users and funds?

In recent years, the stablecoin market has indeed experienced rapid growth, with a plethora of new products emerging. Some projects have launched short-term high-yield offerings to compete for existing users, but unfortunately, not all projects have a solid foundation to support long-term stability and trust. Recent de-pegging incidents have highlighted the risks faced when the underlying mechanisms and risk management of stablecoins are insufficient. This also reminds us that sustainable growth must be built on a solid foundation like USDD, with robust mechanisms and sound risk management, rather than relying on short-term high APY.

Q5 From the user's perspective, what considerations go into choosing a stablecoin?

From a user's perspective, choosing a stablecoin essentially answers one question: Can it "hold steady" in critical moments?

For this reason, USDD consistently adheres to the principle of "Stability Builds Trust," prioritizing stability and security, and building a sustainable yield mechanism on this foundation, aiming to be a trustworthy stablecoin choice for users in various market environments.

Q6 In terms of security (strong backing, sufficient policy resources, long-term stable operations), yield (an endless stream of high-yield new stablecoins), and convenience (integrated ecosystems, yield scenarios, circulation scenarios), what weapons does USDD have to challenge the "already established leaders"?

The key to choosing a stablecoin lies in whether it can provide stability, security, and transparency that truly meet user needs, rather than just focusing on size.

Starting with the yield aspect, in addition to the advantages of USDD PSM 1:1 USDT/USDC no-loss exchange, no unlocking period, we also launched a Yield Bearing product—sUSDD in Q4 2025, allowing users to convert USDD to sUSDD with one click, earning passive interest and automatic compounding, with annualized returns reaching as high as 12% at launch, attracting nearly $100 million in TVL; additionally, sUSDD can be used in various on-chain scenarios, such as forming LPs on Uniswap Pancakeswap, and future lending features will be introduced, meaning users holding sUSDD can enjoy both investment returns and the flexibility to engage in other applications based on their preferences.

When comparing stablecoins, one should not only look at market share but also whether the stablecoin truly meets user needs. For example, while USDT leads the market in liquidity, depth, and scenarios, it is heavily controlled by Tether, which poses significant centralization and freezing risks. More importantly, Tether has been revealed this year to invest part of its collateral in BTC, gold, and other assets for yield, exposing users to risks without distributing any interest, creating a highly asymmetric relationship between returns and risks.

In contrast, whether from a decentralization perspective or the product itself, USDD provides a great solution for users who have been suffering, with anti-freeze features, automatic interest accrual, and the ability to withdraw at any time, with the entire process being costless, requiring only a small gas fee. From this perspective, USDD can be seen as a "yield-bearing version of USDT."

Q7 Specifically regarding security, how does USDD ensure users can confidently exchange and deposit?

USDD has a solid security assurance system. First, USDD adopts an over-collateralized debt position (CDP) model, allowing users to mint USDD using TRX / sTRX / USDT, with different minimum collateral ratios to ensure that each USDD is backed by sufficient assets (see Vaults page for details). Additionally, through the Peg Stability Module (PSM), users can exchange USDD and other stablecoins 1:1 without slippage, and during market fluctuations, the system can automatically correct prices through arbitrage opportunities; at the same time, when the collateral ratio is insufficient, the system will automatically initiate public auctions to liquidate collateral assets, maintaining price stability without manual intervention. The entire process is open and transparent, ensuring safety and control, allowing everyone to use it with confidence.

Q8 How frequently are the collateral, PoR, and other indicators publicly updated on the official website? Is there an auditing party for this data display? Which regulatory bodies oversee it?

Transparency is at the core of USDD's operations. We firmly believe in "user-verifiable trust"—trust is not an empty promise but a security guarantee that users can verify themselves. For example, the investments of Smart Allocator are managed by an internal team, with all transaction hashes, positions, and returns publicly available on-chain, allowing users to check directly on the official website (see SA001-A detail page as an example). USDD's collateral assets are stored in publicly verifiable contract addresses, ensuring complete transparency. The financial data dashboard updates key indicators in real-time, allowing users to monitor collateral and PoR data at any time.

Additionally, USDD undergoes regular third-party independent audits and has passed five rounds of security audits by ChainSecurity and CertiK, with no serious vulnerabilities, and has received a CertiK Skynet AA rating and a security score of 87.5.

Q9 Specifically regarding yield, many stablecoins have subsidy activities in the early stages, but long-term crypto investors have also found that "sustainability is an issue," with various risks increasing. What long-term commitments or strategies does USDD have to stabilize its existing user base? What are the sources of yield? Will there be expansions in the future?

The main source of USDD's yield is our Smart Allocator investment program. Smart Allocator is a yield-sharing mechanism that reasonably invests a portion of USDD's reserve funds into quality projects to obtain returns such as interest and platform rewards. The biggest feature of Smart Allocator is its focus on sustainable growth rather than short-term high-yield speculation. The overall investment strategy is conservative, actively managed by the USDD and JUST DAO teams. Investment platforms undergo strict risk control screening, prioritizing high liquidity and reliability. All investment operations are transparent and traceable on-chain, allowing users to track each investment in real-time on the Smart Allocator page.

Currently, the yield from Smart Allocator has exceeded $8.34 million and continues to grow. In the early development stage of the protocol, TRON DAO also provided phased yield subsidies to support ecological cold starts and user growth; this part of the subsidy is not a long-term reliance and has gradually returned to a sustainable yield structure centered on Smart Allocator.

Additionally, USDD has two auxiliary sources of yield: the stable fees charged when minting USDD through the Vaults mechanism and the liquidation fees during collateral liquidation.

Overall, this robust yield structure ensures long-term stable growth.

USDD Official Website Data as of January 7, 11 AM

Q10 Specifically regarding convenience, the initial strong binding to a specific ecosystem (Tron) and trading platform (HTX) was a good strategy for cold starts, but will there be resistance when expanding to competing platforms and multiple ecosystems (such as already landing on Ethereum and BNB Chain)? Which department's KPI is the horizontal expansion of stablecoins? What is the actual cooperation process?

USDD has performed very well in its expansion from the initial deployment on the TRON chain to its subsequent native deployment on Ethereum and BNB Chain. Taking the recent Yield+ event launched on a leading wallet as an example, it attracted over 3,000 users in the first week, with sUSDD's TVL growing by over 867%, and sUSDD's TVL also surpassing $295 million, making it the fastest-growing stablecoin during the same period. This fully demonstrates the strong demand from users rather than resistance.

USDD will continue to drive multi-chain and multi-platform expansion to meet the growing user demand.

In addition to product research and development, marketing, and risk control, we also have a strategy department responsible for formulating strategic approaches. Besides conducting research on competitors, they also pay attention to all the latest and hottest trends and platforms in the market, such as PTYT, points, and mouth-to-mouth promotions, and then provide an executable plan based on specific circumstances. After internal confirmation, the business department will implement the cooperation.

The actual cooperation process is as follows: for example, our recent collaboration with a leading wallet took more than a month from initial discussions to both parties confirming the cooperation intention, finalizing details, and actually going live, which is considered a relatively long cycle. The most challenging part during this process is the due diligence (DD) phase, as our partners place great importance on reputation and will strictly control project quality. However, this process is worthwhile because passing the due diligence of a leading platform serves as a form of endorsement for us, and I believe this will reduce resistance in our future collaborations with other partners/communities.

Q11 What are the phased goals of USDD?

USDD's current goal is to achieve $1 billion in liquidity.

How have we achieved this explosive growth over the past year? In our journey towards this goal, we have experienced a clear acceleration phase: the early launch of a 20% high yield on the TRON chain rapidly boosted the ecosystem, followed by the launch of sUSDD, which expanded yield opportunities to Ethereum and BNB Chain, pushing USDD into a multi-chain development phase; at the same time, through collaborations with leading exchanges and channels, USDD has reached a broader user base.

Under the influence of multiple factors, USDD's TVL has now exceeded $900 million. Looking ahead to the next phase, USDD will continue to collaborate with on-chain exchanges and DeFi protocols, coordinating both on-chain and off-chain efforts, expanding into a dual-driven approach, continuously enlarging real usage scenarios and capital accumulation, laying the foundation for further expansion of the ecosystem.

As a yield-bearing version of USDT, USDD will always provide users with diverse yield options. Based on this, we have prepared a series of major activities: following the enthusiastic response to the Binance Wallet Yield+ event in the first quarter, the project is about to welcome its second season; additionally, we will launch a brand new Bitget wallet event, featuring subsidies of up to $100,000, with maximum yields reaching 12%. Please stay tuned for official announcements and seize the opportunity to participate.

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