SUI News Today: Crypto's Stablecoin Race: Innovation and Regulation Vie for Control

The crypto stablecoin landscape is undergoing a seismic shift, driven by Stripe's strategic acquisition of Bridge and the Sui Foundation's launch of USDsui, a native stablecoin designed to capture network yield revenue.

The Sui Foundation announced the stablecoin on November 12, leveraging Bridge's Open Issuance platform - a system Stripe acquired in February 2025 for $1.1 billion - to manage reserves through custodians like BlackRock and Fidelity. This move allows Sui to retain revenue from stablecoin activity, with USDsui serving as the primary fiat-backed instrument alongside the native SUI token. Network transfer volumes surged to $412 billion in August-September, primarily in third-party stablecoins like USDC, signaling a growing appetite for blockchain-native solutions.

Regulatory clarity is accelerating innovation. The U.S. GENIUS Act, signed into law in July, has fueled stablecoin growth, pushing U.S. dollar-backed supply beyond $260 billion, according to Bernstein analysts. The legislation permits nonbank entities to issue payment tokens under strict reserve oversight, creating a framework for Stripe's global money-movement strategy. Meanwhile, the Bank of England's deputy governor, Sarah Breeden, warned that weak stablecoin rules risk destabilizing financial systems, citing the 2023 Circle-SVB incident as justification for a 40% asset-reserve requirement with the BOE.

Market dynamics are also reshaping the sector. Stablecoin payment volumes hit $19.4 billion year-to-date in 2025, with projects like OwlTing aiming to capitalize on this growth by offering infrastructure for sub-cent transactions. In Japan, policymakers are debating whether stablecoins could disrupt the $9 trillion bond market, with concerns about commercial banks losing their role in payments.

Stripe's dominance in stablecoin infrastructure is further underscored by its role in processing over $19.4 billion in stablecoin transactions in 2025. The company's integration with high-throughput blockchains like Sui aligns with broader trends of Layer-1 networks internalizing economic value. Sui's Total Value Locked (TVL) now stands at $1.38 billion, reflecting a strategic pivot toward high-frequency financial applications.

However, challenges persist. The Bank of England's proposed reserve rules and Japan's regulatory scrutiny highlight the tension between innovation and stability. Conversely, the U.S. is positioning itself as a global crypto leader, with Bernstein noting that institutional adoption, regulatory clarity, and blockchain integration are driving a "sustainable crypto cycle".

As the industry evolves, Stripe and Sui's USDsui exemplify the convergence of technological innovation and regulatory pragmatism. With stablecoins projected to play a pivotal role in global finance, the race to capture yield, liquidity, and market share is intensifying.