Synthetic tokens see a comeback as stablecoins market cap climbs

Sui enters the stablecoin race with a fully backed token and a synthetic dollar using delta-neutral hedging, as synthetic finance gains new traction.

Synthetic stablecoins are returning to the spotlight this year — this time with renewed confidence in financial engineering designed to neutralize volatility through delta-hedged strategies.

On Wednesday, SUI Group, a publicly traded company providing exposure to the Sui blockchain, announced plans to launch suiUSDe and USDi, described as the first native stablecoins of the Sui ecosystem. The initiative is being developed in partnership with Ethena Labs and the Sui Foundation.

The two stablecoins take distinct approaches to maintaining a dollar peg. USDi will be fully backed by tokenized shares of BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), a regulated money market fund holding short-term US Treasurys and cash equivalents.

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