stUSDT RWA protocol winds down, sets May 2027 deadline for redemptions
In brief
- stUSDT ended interest accrual on Saturday and opened redemptions through May 14, 2027.
- Late redemption requests go to customer support in monthly batches through August 2027.
- The team gave no reason for the shutdown but said assets remain fully backed.
- DefiLlama data shows TVL fell from about $2.3 billion in November 2023 to about $8.6 million.
How redemptions work
Holders of stUSDT and its wrapped version, wstUSDT, can redeem through the official portal until May 14, 2027, the team said. Requests that arrive after that deadline will still be handled (the team said customer support will process them in monthly batches through August 2027).
Anyone holding tokens on an exchange or a defi platform has an extra step. According to the announcement, those tokens have to be moved to a personal wallet before they can be redeemed.
JustLend DAO said it would phase out supply and borrowing functions for its wstUSDT market as part of the transition.
From $2.3 billion to $8.6 million
stUSDT launched on Tron in July 2023. It let users deposit USDT and earn yield from real-world asset investments, including short-term government bonds, and it later expanded to Ethereum.
According to DefiLlama data cited by Cointelegraph, the protocol's total value locked peaked at about $2.3 billion in November 2023, roughly four months after launch, before declining substantially in the years that followed. TVL stood at about $8.6 million on Sunday, down from roughly $60 million a year earlier.
That's what's left of a product that once held billions.
No reason given
The "fully backed" line is the team's own assurance. It's the only explanation-adjacent detail holders have received so far, because the announcement didn't give a reason for the shutdown. Cointelegraph said it contacted stUSDT for more information but didn't receive a response before publication.
The name has caused confusion before. Despite the "USDT" in its ticker, stUSDT isn't affiliated with stablecoin issuer Tether. In September 2023, Tether denied any affiliation with the protocol, saying it was an independent project.
Holders who still have tokens on exchanges or in lending markets like JustLend's wstUSDT market have until May 14, 2027 to move them and redeem through the portal, or they'll be left with the slower monthly support process.
Frequently asked questions
When is the deadline to redeem stUSDT and wstUSDT?
Holders of stUSDT and its wrapped version, wstUSDT, can redeem through the official portal until May 14, 2027, the team said. Requests submitted after that deadline will be handled through customer support in monthly batches through August 2027.
Can I redeem stUSDT held on an exchange or DeFi platform?
Not directly. According to the team's announcement, holders with tokens on exchanges or DeFi platforms have to transfer them to personal wallets before redeeming. JustLend DAO also said it would phase out supply and borrowing functions for its wstUSDT market as part of the transition.
Is stUSDT affiliated with Tether?
No. Despite its name, stUSDT isn't affiliated with stablecoin issuer Tether. In September 2023, Tether denied any affiliation with stUSDT, saying the protocol was an independent project.
