RWA protocol stUSDT winds down after TVL peak of approximately $2.3 billion

The Tron-based yield token stUSDT has stopped paying rewards and opened a redemption window, with the team stating that assets remain fully backed.

Interest stopped accruing on November 14, 2026, and holders of both stUSDT and its wrapped version, wstUSDT, can redeem through the official portal until May 14, 2027.

After that date, the self-service option closes, and any remaining requests will be handled on a monthly basis until August 2027.

Protocol background and mechanics

stUSDT launched in 2023, allowing users to deposit USDT and receive a receipt token tied to yield from tokenized short-term government bonds and other real-world assets, an industry category known as RWAs.

The token used a rebase mechanism, where interest appeared as extra coins in a user's wallet rather than a higher price per coin, while the non-rebasing wstUSDT version was designed to integrate more smoothly with lending markets and liquidity pools.

TVL collapse and redemption process

stUSDT’s total value locked peaked at approximately $2.3 billion in November 2023 but had fallen to between $8.6 million and $9.5 million by mid-November 2026, a decline of more than 99%.

The final stretch was abrupt, with TVL falling 80% on the day rewards stopped, though the bulk of the drop occurred over several years.

Redemption is not a one-click affair for everyone. Users holding tokens on third-party platforms, such as the lending protocol JustLend or the decentralized exchange Curve, must first move them to a self-custody wallet, unwrap wstUSDT, and unstake any positions.

The team said redemptions during the window carry no additional fees, though network transaction fees still apply.

Implications for remaining holders

The most important detail for current holders is the backing claim. The team says the underlying assets remain fully backed, and redemptions are being processed in USDT.

Liquidity is another practical concern. As holders withdraw, any remaining stUSDT and wstUSDT positions in pools on platforms like Curve may thin out, potentially making it harder to exit through secondary markets.

Holders should track whether redemptions process smoothly through the portal, how quickly the remaining TVL drains, and whether third-party platforms adjust their support for the tokens.