SUI Treasury Firm to Launch Stablecoins Despite Legal Concerns

Core Insights - SUI Group is launching two stablecoins in partnership with Ethena Labs, aiming to enhance the utility of SUI's blockchain by the end of 2025 [1][3] - The initiative is seen as a potential shift in the digital asset treasury (DAT) landscape, with SUI Group positioning itself as an infrastructure builder rather than just a traditional DAT company [4] Group 1: Company Developments - SUI Group, formerly Mill City Ventures, has raised $450 million to invest in the SUI token and has a stockpile of $330 million [2] - The new stablecoins, named suiUSDe and USDi, are intended to create a new use case for DATs and challenge the dominance of USDC on SUI's blockchain [4] Group 2: Market Context - The DAT sector is experiencing declining market net asset values (mNAVs) and stock performance, prompting SUI Group's stablecoin launch as a strategy to differentiate itself in a shrinking market [5] - The launch comes amid significant regulatory scrutiny, including the GENIUS Act, which requires issuers to hold reserves in US Treasuries, raising questions about SUI Group's ability to comply [6]