The post Tether Co-Founder’s Stablecoin USST Depegs Hours After Launch appeared on BitcoinEthereumNews.com.

The new stablecoin from the STBL protocol fell below its $1 peg shortly after going live, highlighting challenges for liquidity. USST, a new stablecoin launched on Friday, Oct. 10 by stablecoin platform STBL, co-founded by one of Tether’s founders, slipped below its $1 peg to as low as $0.96 within hours of debuting on Curve, sparking concerns over confidence in the project. At the time of writing, USST is trading at around $0.9776, down 1.5% in 24 hours with a market cap of roughly $967,000 and just 52 holders, according to data from GeckoTerminal. USST/USD price. Source: GeckoTerminal The Curve pool showed around $965,000 in liquidity and 24-hour trading volume of $484,000, with net outflows of about $466,000. So far, 50 transactions have been recorded in the past 24 hours. Earlier today, STBL announced a new USST-related partnership with Ondo Finance – which has a total value locked (TVL) of $1.76 billion — that makes Ondo’s USD-pegged, tokenized yield-bearing asset, USDY, the primary collateral for USST. Up to $50 million in USST stablecoin mints will be backed by USDY, according to a press release shared with The Defiant. For its part, USDY is collateralized by U.S. Treasuries and cash deposits. STBL is a decentralized protocol that offers both a stablecoin, USST, as well as a separate yield-bearing NFT, YLD, that users receive when they mint USST. The project is co-founded by Reeve Collins, one of the co-founders of Tether, who was also the USDT issuer’s CEO from 2013-2015. Tether’s USDT dominates global stablecoin markets, with a current market capitalization of $177 billion, making up over 58% of the sector, per DefiLlama. The early depeg event underscores how difficult it can be for new stablecoins to establish confidence, where liquidity depth, transparency, and credible collateral are important to maintaining a dollar…

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Filed under: News - @ October 10, 2025 8:21 pm