USDD 2.0, a decentralized stablecoin pegged to the USD, has reached a total value locked (TVL) of $1.4 billion as of January 2026. This milestone follows a significant protocol overhaul that introduced an overcollateralized, fully on-chain model, allowing users to mint USDD directly with visible on-chain collateral. The stablecoin's expansion into Ethereum and BNB Chain marks a strategic shift from its TRON origins, enhancing liquidity and DeFi application access. The introduction of sUSDD, built on the ERC-4626 tokenized vault standard, has been pivotal in USDD's growth, enabling users to earn yield while maintaining asset control. By the end of 2025, sUSDD had accumulated over $296 million in TVL and attracted more than 459,000 wallet addresses. USDD's strategy focuses on integrating more DeFi tools and fostering community engagement to solidify its position in the stablecoin market.