Gm and welcome to your today's lesson about
@SonicLabs and
@Frax little beibeeh called
$USSD.
A blockchain is a little bit like a digital city. You have shops, apps, infrastructure, banks, culture and markets and all of them need a simple dollar that always stays worth one dollar. Other dollars may visit and be used too, but the home dollar stays, gets used everywhere and helps with growing the city.
The native (home) dollar in this case is
$USSD. Since march 2026 it runs on the Frax (frxUSD) System which enabled Sonic to build its own secure and institutional-backed stablecoin on top of it. ⬇️
- It is backed by one dollar worth of short-term U.S. government debt (Treasury bills). Those reserves sit with regulated custodians and include products from big names like BlackRock, Superstate and WisdomTree.
- You can create it by handing in common dollars such as USDC or USDT (or certain Treasury tokens) at a 1:1 rate, with no minting fee. You can turn it back into those dollars later.
- You can start on more than 10 other blockchains and receive
$USSD straight on Sonic. Fiat USD redemption exists, but requires KYC.
- Apps on Sonic are meant to use it for trading, lending, and settling payments so the dollar liquidity stays in one place instead of leaking off the network.
- Interest earned on the Treasury reserves is designed to flow back into Sonic. For example by buying the network’s sonic-3:native token or funding incentives.
You may remember that
@MattVisser was talking a lot about the four verticals recently:
Payments and FX rails / AI / RWAs / Prediction markets
Payments and FX rails: Sonic is pairing
$USSD with partners (including Frax’s rails, Circle’s USDC, Spendl and Mastercard spending) so transfers can settle faster and cheaper. People can spend the digital dollar in the real world. A trusted local dollar is the piece that makes those payment rails work.
RWAs: Tokenized Treasuries, funds or other real assets need a common dollar to borrow against or trade with. Products like Nummo use
$USSD as that shared dollar so people can keep their yield, while still borrowing or moving value, with Sonic handling the settlement underneath.
AI, Spawn Studio and the agentic economy: Spawn Studio is where developers build and publish templates for AI agents. Spawn Marketplace is where regular users pick one, fund it and send it off. Those agents will need to pay, hold value and settle on-chain. A steady dollar like
$USSD is the money they can use, so they are not stuck in their operations.
Prediction markets: A bet is just a payment with a score at the end. Someone has to hold the stake, pay the winner and move on. That works a lot smoother if the stake is a dollar that already lives natively on Sonic.
In the end the catch is, which dollar stays. Other dollars can visit and Sonic ofc wants USDC too, e.g. for payments and card spending. But the interest on those reserves stays with Circle.
$USSD is the home dollar. Same kind of Treasury backing, except the interest is designed to come back into the city, as sonic-3:native buybacks or incentives, instead of leaving the city.
That only works if people mint it and leave it there. Using it once does not earn the bill yield. The balance that stays does. Payments, FX, RWAs, agents and markets all need a dollar that does not wander off. If those verticals settle in
$USSD, the city keeps growing.
If they settle in another dollar, Sonic gets the traffic and the issuer gets the income.
Until next time frens 👻 sonic-3:native