Overview
USDD is a dollar stablecoin from the TRON ecosystem, promoted by TRON founder Justin Sun. It launched in May 2022 as an algorithmic stablecoin, a design similar to Terra’s UST, which collapsed that same month.
In June 2022, USDD itself lost its peg, falling to about $0.93, before recovering with support from TRON-related reserves. In January 2025, it relaunched as USDD 2.0, now overcollateralized: backed by more crypto than the USDD in circulation.
How it works
- USDD is minted against collateral, including TRX, USDT and bitcoin, worth more than the USDD issued.
- A peg stability mechanism lets users swap USDD and other stablecoins near $1.
- Holders can stake USDD to earn yield. At launch of USDD 2.0, Justin Sun promoted a 20% yield, funded by TRON DAO subsidies.
By October 2026, about $1.5 billion USDD was in circulation.
The USDD token
| USDD at a glance | |
|---|---|
| In circulation (Oct 2026) | about $1.5 billion |
| Target value | $1.00 |
| Lowest point | about $0.93 (June 2022) |
| Market cap | about $1.5 billion (#63) |
Risks
- Collateral risk. If TRX or other collateral crashed, USDD’s backing would shrink.
- Founder risk. Its fate is closely linked to Justin Sun and TRON DAO decisions.
- Subsidized yields. High yields depend on subsidies that can end at any time.
- Transparency. It is not regulated like USDC, and its reserves are not audited in the same way.
USDD vs. the competition
| USDD | DAI | USDT | |
|---|---|---|---|
| Backing | Crypto (TRX, USDT, BTC) | Crypto, USDC, T-bills | T-bills, BTC, gold, loans |
| Main chain | TRON | Ethereum | TRON, Ethereum |
| Past depeg | Yes (2022) | Brief (2020, 2023) | Brief (2022) |
Our verdict
USDD has improved since its risky early design, and it is useful inside TRON’s DeFi. But its link to one founder, its crypto collateral and its past depeg make it riskier than cash-backed stablecoins. Treat USDD as a higher-risk stablecoin, and be careful with yields that seem too generous.
This review is for information only and is not financial advice.