The creators of stUSDT have omitted any specific explanation for closing down the real-world asset project, while reassuring participants that every underlying reserve asset is completely backed.
The real-world asset (RWA) initiative stUSDT has initiated the process of closing its operations, roughly three years after hitting a peak total value locked (TVL) of $2.3 billion, by halting rewards and launching a six-month redemption period for asset holders.
The developers announced that reward accumulation for stUSDT concluded on Saturday, and individuals holding stUSDT alongside its wrapped variation, wstUSDT, can execute redemptions through the official interface up until May 14, 2027. The project leaders explained that any redemption petitions filed past this final date will be processed via customer service teams in monthly waves lasting through August 2027.
The project crew didn’t offer an explicit motive for the shutdown, though they maintained that all backing assets remain fully secured. Participants holding tokens inside centralized exchanges or decentralized finance platforms must move them into self-custodial wallets prior to initiating redemptions.
Cointelegraph reached out to the stUSDT representatives seeking additional details but did not obtain a reply ahead of publication time.
Concurrently, JustLend DAO notified the community that it will systematically discontinue borrowing and supplying operations for its wstUSDT market as part of the broader transition.
Initial deployment occurred in July 2023 on the Tron network, enabling users to deposit USDT and generate returns derived from real-world asset holdings, notably short-duration government securities. The platform later broadened its reach to include Ethereum.
Based on metrics from DefiLlama, the total value locked in stUSDT reached its highest point at approximately $2.3 billion back in November 2023 before experiencing severe contraction over the ensuing years. The figure hovered around $8.6 million by Sunday, falling sharply from roughly $60 million a year prior.
Despite the similarity in naming conventions, stUSDT maintains no formal ties with Tether, the prominent stablecoin issuer. Back in September 2023, Tether disavowed any connection to stUSDT, clarifying that the platform operated as a completely separate venture.
Related: Tron and Tether bring in Chainalysis after T3 crime unit folds
Originally published at https://cointelegraph.com/news/rwa-protocol-stusdt-winds-down-three-years-after-23b-tvl-peak?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound.
