USDJ, the first JST-backed stablecoin on the TRX ecosystem, will officially cease operations on August 31, 2025. The stablecoin, which has been active on-chain for five years, is undergoing a permanent wind-down, as confirmed by Justin Sun and the JUST DAO.
In a post published on August 6, JUST DAO issued a reminder to all USDJ holders to migrate their assets immediately in order to avoid potential losses due to shrinking liquidity or increased market volatility. “Please act promptly: close your positions or swap $USDJ for $USDD or other assets to avoid potential losses from liquidity shortage or market volatility,” the post warned.
To protect user assets, JUST DAO is urging all stakeholders—including USDJ holders, collateral debt position (CDP) users, and JustLend DAO participants—to settle their positions as soon as possible. Users are encouraged to exchange USDJ for alternative stablecoins such as USDD, USDT, or USDC before the final shutdown.
According to a prior announcement made in early June, the JustLend DAO has already disabled the ability to supply or borrow USDJ since May 2025. Additionally, the protocol has capped the maximum minting supply of USDJ at 10 million tokens.
Further steps to phase out the stablecoin include raising the reserve factor on USDJ to 100%—effectively halting interest payments to liquidity suppliers—and reducing the collateral factor to zero, rendering USDJ unusable as a collateral asset.
The wind-down also involves the gradual delisting of USDJ from major exchanges, further reducing its liquidity and limiting exit options. In light of these changes, users are strongly advised to swap their USDJ holdings for other assets before the August 31 deadline.
Why Is the USDJ Protocol Being Shut Down?
According to previous announcements, the JUSTLend DAO has decided to discontinue USDJ to make room for newer DeFi and TRON-based stablecoins, particularly USDD. The move reflects a broader strategic shift in the ecosystem, focusing on improved stablecoin performance and evolving functionality.
The JustStable team explained the decision in a recent statement: “To align with industry trends and optimize resource allocation, we are initiating the USDJ Sunset Plan after deliberation for an orderly transition.”
USDD, the decentralized stablecoin issued by Justin Sun’s TRON DAO Reserve, is set to take center stage. Built on the TRON blockchain, USDD is designed to maintain a 1:1 peg with the U.S. dollar using a hybrid model of collateralization and algorithmic mechanisms.
The system allows users to help stabilize the price: when USDD trades below $1, holders can swap it for TRX; when USDD rises above $1, users can mint new USDD by depositing TRX. This model aims to provide greater flexibility, decentralization, and long-term sustainability within the TRON DeFi ecosystem.
What Is the Current Status of Justin Sun’s USDJ in the Market?
Despite the looming shutdown of the USDJ protocol, the stablecoin has seen a modest price increase of 0.4% over the past 24 hours, currently trading at $1.05. However, this price movement comes amid a sharp drop in its market capitalization, which has effectively fallen to zero.
According to data from CoinGecko, USDJ remains actively traded, likely as users rush to swap their holdings before the August 31 deadline. In the past 24 hours alone, the token recorded a trading volume of $1.13 million, with the total supply in circulation now reduced to just 108,393 tokens.
Interestingly, despite its winding down, USDJ still shows a fully diluted valuation of approximately $114,251 and maintains a total value locked (TVL) of over $47 million—underscoring that some capital remains tied up in the protocol as users finalize their exits.
The Origins of Justin Sun’s JST-Backed Stablecoin, USDJ
Launched in 2020, USDJ is a decentralized stablecoin built on the TRON blockchain. It was designed to maintain a 1:1 peg with the U.S. dollar and is primarily generated through smart contracts on the TRON network. Anyone could mint USDJ by pledging TRX as collateral, using a system based on Collateralized Debt Positions (CDPs).
The protocol also incorporated autonomous feedback mechanisms to help maintain price stability. According to the Djed white paper cited in earlier reports, this structure was meant to support a fully decentralized and transparent stablecoin model.
In January 2020, Justin Sun hinted at the development of such a project in a post where he mentioned a “new decentralized stablecoin backed by $TRX & $BTT”—a statement widely interpreted as the precursor to USDJ.
