USDD

USDD is a crypto-backed US dollar stablecoin from the TRON ecosystem, minted against TRX and other collateral.

USDD is a stablecoin that aims to stay worth one US dollar. It was created in 2022 in the TRON ecosystem founded by Justin Sun. The first version, now called USDDOLD, was an algorithmic design issued by the TRON DAO Reserve and minted by burning TRX. In January 2025 it was replaced by USDD 2.0, a new token that is backed by crypto collateral instead.

Today USDD is minted in two main ways. Users lock collateral, mostly TRX, in vaults and borrow USDD against it, paying a yearly stability fee of 0.5–1%. Or they swap USDT or USDC for USDD one-for-one through the Peg Stability Module (PSM), which also lets them swap back while reserves last. On 27 September 2026 there were about 1.56 billion USDD and sUSDD, backed by about $2.26 billion of collateral.

A large part of the backing now sits in the Smart Allocator. On 27 September 2026 it held about $1.02 billion in lending and savings markets such as Spark, Aave and JustLend, earning interest. That interest funds the savings rate paid to holders of sUSDD, a separate token received by depositing USDD. The rate was 4% a year; before the Smart Allocator it was subsidised by TRON DAO.

USDD runs on TRON, Ethereum and BNB Chain, but most of it is on TRON. Its record is mixed: the first version briefly lost its peg in June 2022, and in August 2024 about $732 million of bitcoin was removed from its reserves without a vote. The USDD docs say governance details are still to be published.