As a seasoned crypto investor with a knack for spotting promising partnerships and innovative ideas, I find the collaboration between Ethena and Securitize intriguing. The joint application to include USDtb stablecoin in Sky’s $1 billion tokenization contest is a strategic move that could potentially yield significant returns.
Ethena, a company that creates stablecoins, has teamed up with Securitize, a tokenization platform, to apply for the opportunity to integrate their USDtb stablecoin into Sky’s one-billion-dollar tokenization competition.
Ethena (ENA) and Securitize recently presented a combined proposal for Sky’s Spark contest. Their objective is to employ BlackRock’s tokenized U.S. treasury fund, known as BUIDL, as the main reserve asset in their plan.
In March 2024, BlackRock introduced BUIDL, the most valuable tokenized U.S. treasury assets fund by market capitalization. Ethena and Securitize aim to utilize this launch for their participation in the Tokenization Grand Prix, a competition aimed at introducing $1 billion worth of tokenized public securities onto the Sky platform, previously known as MakerDAO.
In June of this year, the sky-based lending platform Spark launched a contest, giving asset issuers from the real world an opportunity to earn up to $1 billion in funding. Applications for this competition were made available on August 12, 2024.
In addition to the USDtb application, Ethena and Securitize have proposed a swap mechanism involving Ethena’s other stablecoin, USDe. This proposal aims to facilitate the redistribution of assets between the two stablecoins in response to Sky’s changing interest rates.
Ethena Labs stated in X that if the investment in cryptocurrency grows, Sky can swiftly and effortlessly decrease any holdings of USDt and increase its USDe allocation without encountering friction. This process would be quicker compared to allocating funds to and from current RWA issuers.
Ethena generates around $120 million in yearly income for Sky, representing almost 30% of their overall profits from the decentralized finance sector. The collateral supporting this figure is only allocated about 13%.
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2024-11-29 19:41