USX Stablecoin Stabilizes After Short Depeg Triggered By DEX Selling Pressure.
USX, Solana's native U.S. dollar-peg stablecoin, was trading briefly on the decentralized exchange early Friday as it succumbed to heavy selling pressure, crowding liquidity in Orca and Radium, prompting issuer Solstice Finance to step in with liquidity support.
On Friday, PeckShieldAlert showed USX trading as low as $0.10 in secondary markets before repurchasing on the X-Post, a move driven by isolated trades during extremely thin liquidity.
Composite DEX data shows less extreme activity. A 15-minute USX/USD chart from GeckoTerminal's Orca Pool shows USX dropping to $0.80, where most of the trading volume occurred, before recovering and stabilizing around $0.99.
Solstice said liquidity began to increase around 04:30 UTC, after which prices rebounded to a peg, saying it would continue to support secondary markets as needed. The company said USX reserves remained above capacity, primary market redemptions were unaffected and requested third-party testimony to confirm its holdings.
The issuer said 1:1 redemptions are available to licensed institutional partners and is working with partners to minimize the impact of similar episodes in the future.
Solstice added that the volatility did not affect eUSX positions or its YieldVault products, and that trades made during the session were final, with buyers who bought USX at lower prices not required to be refunded.
USX is a Solana native, dollar-peg stablecoin issued by Solstice Finance. At the time of this writing, data from CoinMarketCap indicates that it has a market cap of approximately $284 million.
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The risk of a stable coin
The global stablecoin market has expanded significantly since the US passed the Genius Act, which established a regulatory framework for dollar-peg tokens. As banks, payments companies and crypto-native companies rush to enter the market, critics warn that the rapid growth of statcoins could introduce new financial stability risks.
Dutch central bank governor Olaf Schleipen said in November that as dollar-peg tokens become more prevalent in the financial system, the European Central Bank may eventually consider the stablecoin not only a source of macroeconomic shocks, but a regulatory concern.
In an interview with the Financial Times, Sleppen warned that instability in statcoins could force a rapid sale of reserve assets, add tension to markets and hurt inflation.
In the year On December 4, the International Monetary Fund, a global financial institution that oversees economic stability, released a report that examines the rapid growth of the stablecoin market and how major states including the US, UK, Japan, and the European Union are controlling it.
The IMF said that while new rules could help address macro-financial risks, global regulation remains fragmented, warning that the spread of stablecoins across blockchains and exchanges could create interoperability challenges and cross-border conflicts.
According to Defilama data, the stablecoin market is now $308.5 billion, up from around $260 billion on July 18, when the Genius Act was signed.
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