BNB Chain Teases ‘U’ Stablecoin for Large-Scale Institutional Use

The BNB Chain ecosystem is entering a new era of liquidity with the announcement of an institutional-grade stablecoin. On December 16, 2025, official channels revealed that a brand-new asset—specifically designed for “large-scale scenarios”—is set for release. Further technical details are expected to be disclosed on December 18. 

Community attention has shifted toward a project simply called “U.” Speculation was fueled when Binance Co-Founder Changpeng Zhao (CZ) began following the project’s developers on social media. According to BNB Chain, the new stablecoin aims to enhance transactional efficiency and enable large-scale decentralized finance applications. 

The network emphasized that the project will provide robust liquidity support across multiple use cases. “A brand new stablecoin will officially launch on BNB Chain. The goal is to integrate liquidity across various application scenarios—designed specifically for large-scale applications,” the BNB Chain official account posted.

The announcement comes amid a strong rise in stablecoin adoption on the network, with total circulation recently surpassing $15 billion. 

Stablecoin growth surges on the BNB Chain

The stablecoin transactions on the BNB Chain have steadily increased in the last month. From data gathered from Dune Analytics, the total number of stablecoins in circulation has steadily increased from $14.8 billion on November 16th to beyond $15 billion on December 14. This is indicated by a sudden spike in the chart of November 17 with slight variations.

As confirmed by BNB Chain in a different post, the network also drew attention to the fact that stablecoins were an important factor for the growth during Q3 of 2025. The total market cap increased by 32.3% QoQ to $13.9 billion. 

USDT was the largest stablecoin, adding $8 billion to the total market. USD1 also grew to $2.1 billion, while USDC rose 41%. Smaller stablecoins like USDX, USDe, and USDF saw strong growth, with USDe increasing more than tenfold.

Global stablecoin adoption and Kyrgyzstan’s move

BNB Chain’s growth fits into a bigger global trend. Recently, Kyrgyzstan launched the KGST stablecoin, tied directly to its national currency, the som. CZ, acting as an adviser to Kyrgyzstan’s crypto committee, said BNB might be included in the reserve supporting KGST. The country plans to list KGST on international platforms and create a national crypto reserve within the next two months.

President Sadyr Japarov called on the Ministry of Economy and Commerce to create legislation on virtual assets while the National Bank is piloting a digital som. Kyrgyzstan’s approach illustrates a case of countries exploring stablecoin and CBDC as a means for nations to improve payments, enhance transparency, and widen financial inclusions.

Stablecoin infrastructure innovation

Apart from national efforts, private players are also pushing the envelope of stablecoin usefulness. In October, YZi Labs spearheaded a $50 million seed round in Better Payment Network. 

BPN designs hybrid on-chain liquidity pools that allow stablecoin swaps and real-time settlements. The network is based on the BNB Chain and aims at reducing cross-border costs from 2% to 0.3% while shrinking the settlement time from two days to mere hours.

Additionally, BPN combines models of centralized and decentralized finance to ensure seamless transactions with effective market-making. This innovation flags BNB Chain’s growing role as a hub for stablecoin infrastructure in emerging markets.

BNB Chain’s upcoming stablecoin shows how quickly the network is growing and experimenting with new ideas. With CZ following the U project and Kyrgyzstan testing its own digital currency, stablecoins are becoming an important part of modernizing payments.

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