ETH has been doing 'sit-ups' in a narrow range of under 100 dollars all night, with both bulls and bears battling fiercely on the candlestick chart, but another silent revolution regarding the future of the digital dollar has quietly completed its deployment on Ethereum.
From 2940 to 3020, this 80-dollar space has become the source of sleepless nights for all ETH traders last night. Both sides have been worn down by this 'sit-up', and the market seems to be waiting for something.
The negative impact of Japan's interest rate hike has been fully realized, U.S. stocks hold strong, and the Federal Reserve's tone seems to be changing as well—White House advisor Hassett directly stated, 'Inflation is only 1.6%, Federal Reserve, it’s time to cut interest rates!'
At the same time, the stablecoin market is undergoing a profound transformation. U.S. Treasury Secretary Yellen recently predicted that by the end of 2028, the market size of stablecoins pegged to the US dollar could reach $2 trillion or more.
01 Market Volatility Period, the Evolution of Stablecoins
When mainstream cryptocurrencies fluctuate repeatedly within a narrow range, the decentralized stablecoin sector is experiencing its critical moment. Stablecoins are no longer just a medium of exchange; they are evolving into a key bridge connecting traditional finance and the decentralized world.
The U.S. stablecoin bill has passed procedural voting and is entering substantive discussion stages, indicating that this market is about to welcome a more defined regulatory framework. In this context, various stablecoin projects are accelerating their layouts.
The total market value of stablecoins pegged to the US dollar has reached $246.9 billion, accounting for over 96% of the overall stablecoin market. Behind this number is the growing demand from users for stable value assets that can be used in the crypto world.
The fundamental difference between decentralized stablecoins and traditional centralized stablecoins lies in transparency and censorship resistance. Users do not need to trust a centralized entity; everything is publicly verifiable on the blockchain.
02 Anchoring New Standards, Over-Collateralization Mechanisms
As a representative of decentralized stablecoins, USDD recently completed its native deployment on Ethereum, successfully integrating into the world's largest Layer 1 ecosystem.
This deployment is not just a technical migration but a significant strategic leap. A deep report released by Messari in September 2025 noted that USDD has built strong risk resistance capabilities through its over-collateralization mechanism.
As of early September 2025, the total value of its reserve collateral has exceeded $620 million, consistently remaining above the circulating supply of USDD, strictly maintaining an over-collateralized status. This over-collateralization mechanism provides solid security for user assets.
The international top security audit firm CertiK has conducted a comprehensive audit of USDD's new contract on Ethereum, with all underlying contract codes rigorously verified, eliminating vulnerability risks from the source.
03 Dual-Drive Architecture, balancing stability and profit
To maintain price stability, USDD has introduced the Peg Stability Module (PSM), allowing users to seamlessly exchange USDT/USDC for Ethereum USDD at a fixed 1:1 exchange rate.
The arbitrage mechanism of PSM has established a solid price anchor for USDD, keeping it consistently around $1 in the secondary market. As of September 8, 2025, the total amount of USDD exchanged through PSM has increased from $1.15 billion in the second quarter to $2.5 billion.
What deserves more attention is that USDD is about to launch a new interest-earning product, sUSDD, aimed at helping USDD holders earn interest through a transparent decentralized savings system. This design is particularly suitable for those who wish to manage their on-chain assets autonomously while pursuing passive appreciation of stablecoins.
PSM and sUSDD together constitute the USDD ecosystem's 'stability + yield' dual-drive architecture, creating a rock-solid stability foundation while opening up attractive yield channels.
04 Multi-Chain Expansion, Connecting a Broader Ecosystem
The native deployment on Ethereum is just the starting point of USDD's multi-chain expansion strategy. In the future, USDD plans to gradually expand to more mainstream public chains, breaking ecological barriers to achieve efficient interconnection between users and assets.
This layout will not only broaden the application scenarios and user base of USDD but will also promote the entire DeFi ecosystem to evolve towards a more open and interconnected direction. From TRON to Ethereum, USDD is being embedded into the world's top blockchain networks in a native deployment manner.
To celebrate this progress, USDD has simultaneously launched an exclusive airdrop incentive plan for Ethereum—users holding native USDD on Ethereum can enjoy tiered APY, with a maximum of up to 12%. This initiative not only rewards community users but also demonstrates USDD's development philosophy of driving ecosystem growth through innovative mechanisms.
The ability to connect different blockchain ecosystems will become a key indicator for measuring the long-term value of a stablecoin project. Through the Smart Allocator mechanism, USDD invests reserve funds into low-risk DeFi protocols to generate real yields and continuously recycle profits back into the system.
05 Market Prospect, a future worth $2 trillion
The explosive growth of the stablecoin market has become an undeniable fact. U.S. Treasury Secretary Yellen clearly stated during a Senate Appropriations Committee hearing that stablecoin legislation backed by U.S. Treasury securities or short-term Treasury bills will create a market to expand the use of the dollar globally through stablecoins.
He pointed out: 'I believe $2 trillion is a very reasonable number, and I expect it to far exceed this figure.' This prediction has injected a shot of confidence into the entire stablecoin industry.
As the stablecoin bill becomes increasingly likely to be legislated, major financial institutions such as American banks are preparing to launch their own stablecoins. This indicates that the traditional financial world has begun to take this emerging field seriously.
In such a grand context, decentralized stablecoins like USDD, which have transparent mechanisms, over-collateralization, and multiple yield models, are expected to secure a place in an increasingly regulated market.
Data from the Ethereum network shows that the value of USDD’s reserve collateral increased by 5% quarter-over-quarter in Q3 2025, surpassing the stablecoin supply growth rate of 3%. Its circulating supply has exceeded 450 million.
While traders are anxious about every point of fluctuation within a narrow range, the evolution of blockchain infrastructure is quietly progressing. The battleground for stablecoins is no longer limited to maintaining a $1 peg but has expanded to multidimensional competition in yield mechanisms, cross-chain interoperability, and regulatory compliance.
