Summary
Ketju does not approve USDD: it lost its peg for nearly two weeks in 2022, we could not confirm the legal form or jurisdiction of the reserve that backs it, and 82% of its supply sits on Tron. USDD launched in May 2022 as an algorithmic stablecoin backed by TRX and marketed as having learned from Terra’s UST collapse. Weeks later, in the June 2022 Terra contagion, it fell to $0.9585, about 4.2% below peg, and stayed down for nearly two weeks. USDD has since been rebuilt as "USDD 2.0," a MakerDAO-style system of collateralized debt positions with a Peg Stability Module. Its peg has held much tighter through 2025 and 2026. That record is under two years old and has not been tested by stress like June 2022’s. The SEC sued Tron founder Justin Sun for unregistered securities sales and market manipulation. It dropped the suit in February 2025, shortly after Sun invested $30 to 75M in the Trump family-linked World Liberty Financial. That timing proves no wrongdoing, but we treat it as material and unresolved.
Review triggers
- TRON DAO Reserve publishes its legal form and jurisdiction
- Ketju confirms against deployed bytecode that the USDD contract has no freeze or blacklist function
- USDD holds its peg for 12 consecutive months that include at least one real period of market stress
- usdd.io publishes its restricted-jurisdiction list, and the list is confirmed not to depend on the open regulatory questions
Facts
- Verdict
- Not approved
- Type
- Other
- Chains examined
- Tron, Ethereum, BSC
- Instruments
- USDD
- Reviewed
- Last confirmed