Stablecoins, DeFi, and a Dash of Folly: Sui Group’s Grand Crypto Ballet

Finance

What to know:

Sui Group, in a fit of financial whimsy, has decided to layer stablecoin and DeFi revenues atop its SUI holdings, as proclaimed by Steven Mackintosh, the company’s chief investment officer.
The SuiUSDE stablecoin, a marvel of modern alchemy, is slated to debut in early February, with fees dutifully funneling back into SUI buybacks.
Mackintosh, ever the optimist, aims for higher yield and a burgeoning SUI per share over the next five years, as if the fickle gods of crypto will oblige.

Sui Group Holdings (SUIG), the lone Nasdaq-listed entity with an official dalliance with the Sui Foundation, aspires to be the crown jewel of the blockchain’s ecosystem, according to Mackintosh, its chief investment officer. A lofty goal, no doubt, in a realm where ambition often outstrips prudence.

Once known as Mill City Ventures, this U.S.-based specialty finance firm rechristened itself Sui Group Holdings in 2025, pivoting toward a foundation-backed digital asset treasury (DAT) strategy centered on SUI, the native token of the Sui network. A rebranding, one might say, as much about hope as it is about strategy.

While the company persists in investing in and advising public and private companies, Mackintosh insists its priority is now crystal clear: amassing SUI and erecting infrastructure that generates recurring yield for shareholders. A noble endeavor, though one wonders if the crypto seas will be kind.

“Our performance is always going to be correlated to the price of SUI,” Mackintosh confided to CoinDesk, with a candor that borders on fatalism. “The goal is to be the most innovative DAT in the market by embedding ourselves directly into the Sui ecosystem.” A bold statement, indeed, in a market where innovation is often a euphemism for chaos.

Growing the SUI treasury

Sui Group presently holds approximately 108 million SUI tokens, valued at a modest $160 million, representing just under 3% of the circulating supply. Mackintosh, ever the dreamer, aims to swell this stake to 5% of the circulating float, a milestone he deems “really important.” One can only hope the market shares his enthusiasm.

The firm has already bolstered its SUI per share metric, a benchmark akin to ether-per-share used by Ethereum-focused treasury companies, from 1.14 to 1.34. A small victory, perhaps, but a victory nonetheless.

In a PIPE deal, executed when SUI traded near $4.20, the treasury was valued at a robust $400-450 million. Sui Group raised about $450 million, prudently withholding around $60 million to navigate the tempestuous waters of market risk. A move Mackintosh credits with sparing them from forced token sales during periods of volatility. Wisdom, it seems, is not entirely absent in this venture.

Sui Group’s digital assets are custodied and managed by Galaxy Digital (GLXY), its official asset manager. A partnership that, one hopes, will prove more fortuitous than foolish.

From treasury to operating business

Mackintosh declares the company is now transcending the mere act of buying and staking SUI, venturing into a full operating model. The centerpiece of this grand design is SuiUSDE, a native, yield-bearing stablecoin forged in partnership with the Sui Foundation and Ethena, anticipated to launch in February following rigorous testing. Sui Group, it appears, is among the first to white-label Ethena’s technology on a non-Ethereum network. A pioneer, or perhaps merely a gambler.

“Wall Street understands stablecoins far better than altcoins,” Mackintosh observed, with a touch of wry humor. “This is an opportunity to capture that premium inside a public equity.” One can almost hear the collective sigh of relief from the suits on Wall Street.

Under this arrangement, 90% of fees generated by SuiUSDE will flow back to Sui Group Holdings and the Sui Foundation, either to buy back SUI in the open market or to be redeployed into Sui-native DeFi. The stablecoin is expected to permeate platforms like DeepBook, Bluefin, Navi, and decentralized exchanges (DEXs) such as Cetus, as well as serve as collateral throughout the ecosystem. A grand vision, if ever there was one.

Mackintosh’s ambition is to lure the yield-hungry DeFi users who fueled Ethena’s growth on Ethereum, bringing that same fervor to Sui. Discussions, he notes, are underway with players like Pendle. One can only imagine the negotiations, a delicate dance of promises and prudence.

Ethena, for its part, is a DeFi protocol on Ethereum dedicated to crafting a crypto-native synthetic dollar and financial infrastructure that operates independently of traditional banking systems. Its flagship product, USDe, is a synthetic dollar designed to maintain a stable 1:1 peg to the U.S. dollar using delta-neutral hedging of crypto collateral combined with derivative positions, rather than relying on fiat reserves held in banks. A complex solution to a complex problem, one might say.

DeFi revenue and yield ambitions

Sui Group has also entered into a revenue-sharing agreement with Bluefin, the leading perpetual futures DEX on Sui. The company receives a fixed percentage of trading fees, adding a recurring revenue stream to its DAT. A shrewd move, if it pays off.

“Perps are the killer use case in crypto,” Mackintosh declared, with the confidence of a man who has seen the future. “We’ve gone from a company that buys and stakes SUI to an operating business that owns a stablecoin and earns revenue from a perps DEX.” A transformation, indeed, though one wonders if it will be enough to weather the storms ahead.

Two additional ecosystem deals are in the pipeline, he added, with the air of a man who holds all the cards. Time will tell if they are aces or deuces.

While SUI’s base staking yield hovers around 2.2%, Mackintosh points out that the network’s fixed 10 billion token supply and fee-burn mechanism render it structurally deflationary, in stark contrast to inflationary networks like Solana and Ethereum. A distinction, one hopes, that will prove advantageous.

If Sui Group can elevate its effective yield to around 6% through operating revenues, Mackintosh believes SUI per share could grow materially over the next five years, even before factoring in price appreciation. A rosy outlook, to be sure, but one that hinges on a great many ifs.

“The combination of deflation and higher yield gives us a very compelling long-term setup,” he concluded, with the optimism of a man who has staked his career on it.

Capital discipline and market volatility

Mackintosh drew a contrast between Sui Group’s approach and that of other DATs that have faltered amid volatility, forced token sales, and convertible debt structures. A subtle jab, perhaps, at those less fortunate-or less prudent.

In the recent market downturn, digital asset treasury companies, publicly traded firms that build core business models around holding large crypto balances, came under sustained pressure that forced some to sell down parts of their crypto stacks and rethink their strategies. A harsh reminder of the perils of this high-stakes game.

Sui Group, however, recently bought back 8.8% of its own shares and still holds about $22 million in cash, which Mackintosh touts as providing flexibility without necessitating knee-jerk decisions. A buffer, one hopes, against the whims of the market.

“We’ve been patient, we’ve used cash effectively and we haven’t chased financial engineering,” he said, with a hint of pride. “That discipline matters in this market.” A sentiment that, one suspects, will be put to the test in the months and years to come.

Looking ahead to 2026, Mackintosh affirmed the firm’s focus remains singular: making Sui Group Holdings the central economic actor in the Sui ecosystem and offering public-market investors a cleaner way to access its growth. A noble goal, though one wonders if the crypto gods will smile upon their endeavor.

2026-01-25 17:22