STBL Launches USST on Stellar to Unlock Liquidity for Tokenized Real-World Assets
By Lauren Towner · 2 July 2026
In brief: STBL has launched USST on the Stellar network, an institutional-grade stablecoin backed by tokenized real-world assets (RWAs) like money market funds, with $3M already minted.
| Initial Minting | US$3 million |
|---|---|
| Primary Collateral | USDY (Tokenized Money Market Fund) |
| Planned Collateral | Franklin Templeton's BENJI |

Quick Summary
STBL has launched USST, an institutional-grade stablecoin backed by tokenized real-world assets, on the Stellar network. This launch enables institutions to mint stablecoins using tokenized treasuries as collateral, providing immediate liquidity for DeFi and cross-border settlement without sacrificing exposure to yield-bearing underlying assets.
How Does USST Solve Liquidity Challenges for Institutions?
STBL addresses a critical friction point in the tokenized real-world assets market: the inability to easily spend or move value locked in yield-bearing instruments. By allowing market participants to deposit tokenized money-market funds like USDY to mint USST, the protocol creates a scalable liquidity base for onchain activity. This mechanism ensures that institutional-grade stablecoin utility is available for:
- Onchain settlement and DeFi applications.
- Overcollateralized lending and borrowing.
- Cross-border payments and collateral mobility.
The architecture is specifically designed to separate yield from principal, ensuring the asset is not classified as a yield-bearing instrument, which is a vital distinction for regulatory compliance in many jurisdictions.
What Results Has the Stellar Integration Delivered?
The launch on the Stellar network has seen immediate market traction, with US$3 million USST minted shortly after deployment. This integration leverages Stellar’s low-fee infrastructure and high transaction speeds to support institutional asset workflows at scale. Key metrics and features include:
- $3M initial minting volume on Stellar.
- USDY collateral integration at launch.
- BENJI integration planned via Franklin Templeton.
"We are fundamentally rewiring how value moves and grows in the digital economy," said Dr. Avtar Sehra, CEO and Co-Founder of STBL. "Institutional investors increasingly hold tokenized treasuries and money market funds, but they still face a trade-off between maintaining DeFi exposure and accessing liquidity. USST removes that trade-off. Through the launch of USST on Stellar, we can bring that model to one of the industry's leading RWA ecosystems with meaningful liquidity."
FF NEWS TAKE:
The launch of USST on Stellar is a significant milestone for tokenized real-world assets. By turning static tokenized treasuries into liquid stablecoin assets, STBL is solving the 'utility gap' that has hindered institutional DeFi adoption. This move definitely moves the needle by proving that the Stellar network is a premier destination for RWA liquidity. Expect this to trigger a wave of similar collateralized stablecoin launches as institutions seek capital efficiency.
Frequently asked questions
What is USST and how does it work on Stellar?
USST is an institutional-grade stablecoin launched by STBL on the Stellar network. It is backed by tokenized real-world assets (RWAs), allowing users to deposit high-quality assets like tokenized treasuries to mint USST for use in liquidity, settlement, and DeFi applications.
Which assets can be used as collateral for USST?
Initially, USST minting on Stellar is supported by the tokenized money market fund USDY. STBL plans to expand collateral options to include other institutional-grade assets, such as Franklin Templeton's BENJI tokenized fund.
Is USST considered a yield-bearing instrument?
No, USST is designed to separate yield from the principal unit of account. This technical architecture ensures it is not categorized as a yield-bearing instrument, helping institutional participants align with evolving global regulatory frameworks.
About the companies
Stellar Development Foundation
Website · 16 stories and 1 video interview on FF News since 2021
Previously on FF News:
stbl
Website · 1 story on FF News since 2026
Franklin Templeton
Website · 32 stories on FF News since 2021
Previously on FF News:
- N26 Partners with Franklin Templeton to Launch Digital Private Retirement Accounts in Germany 12 November 2026
- SC Ventures and SBI Group Back Soter Insure to Scale Digital Asset Protection 5 November 2026
- t54 Labs Secures Strategic AI Finance Partnerships with RiskX, Hecto Financial, and Arco Financial 3 November 2026
Companies in this story: Stellar Development Foundation, stbl, Franklin Templeton
People in this story: Raja Chakravorti, Reeve Collins, Dr. Avtar Sehra