Ethena officially launches USDtb, stablecoin backed by BlackRock

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As a researcher with a keen interest in the evolving world of digital finance, I find the introduction of USDtb by Ethena Labs particularly intriguing. The unique 90% allocation to BlackRock’s BUIDL fund sets it apart from other stablecoins, offering a promising scale and stability that could potentially reshape the landscape of this sector.

As an analyst, I’m excited to share that I’ve recently learned about Ethena Labs’ latest innovation – the introduction of a new stablecoin, USDtb. What sets this apart is its backing by the esteemed BlackRock’s USD Institutional Digital Liquidity Fund, providing a solid foundation for its stability.

USDt, much like well-known stablecoins such as USD Coin (USDC) and Tether (USDT), functions in a similar manner by keeping reserves equal to the value represented in circulation. These reserves are maintained in cash or equivalents of cash assets at a 1:1 ratio.

Instead of the majority of stablecoins, USDtb sets itself apart by investing 90% of its reserve funds into BlackRock’s BUIDL fund. This tokenized money market fund primarily focuses on purchasing short-term U.S. Treasury bills, cash, and repurchase agreements.

According to Ethena (ENA), this BUIDL allocation is the greatest among all stablecoins. This enables USDtb to grow efficiently while offering a substantial level of stability.

The new stablecoin is being introduced in collaboration with Securitize, a prominent figure in the tokenization of real-world assets. USDtb stands out as a more conventional choice for a stablecoin, offering a distinct risk profile compared to USDe, Ethana’s primary token, which relies on a derivative approach to keep its value aligned with the U.S. dollar.

Ethena’s financial ecosystem 

USDtb’s entry into the scene is a key component of Ethena’s overall plan to strengthen its system, especially in turbulent financial markets. While USDe brings returns by selling off assets such as Bitcoin (BTC), Ether (ETH), and Solana (SOL), it may struggle during market declines or when facing adverse funding rates.

To lessen these potential issues, Ethena’s Risk Committee has endorsed USDt as a standby resource for USDe. This enables the platform to adjust reserves whenever needed. Additionally, USDt is anticipated to function as an additional collateral choice for margin trading on centralized exchanges, thereby increasing its versatility.

Today marks the debut of our innovative new stablecoin, USDtb. This groundbreaking product is supported by BlackRock’s BUIDL Fund and in collaboration with Securitize. For a comprehensive understanding, please read the details provided below. 👇

— Ethena Labs (@ethena_labs) December 16, 2024

As a crypto investor, I’m reassured to know that Ethena has teamed up with trusted custodians like Copper, Zodia Custody, Komainu, and Coinbase Institutional for securing the reserves of USDtb. This partnership, as stated by the company, adds an extra layer of security to my investment.

As an analyst, I too have submitted an application proposing the inclusion of Ethena’s USDtb in Sky’s $1 billion Tokenization Grand Prix. This ambitious initiative seeks to finance innovative projects that tokenize real-world assets.

After undergoing multiple thorough evaluations from esteemed auditors like Pashov, Quantstamp, and Cyfrin, the introduction of USDtb is now assured, bolstering its reputation for safety and dependability.

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2024-12-16 18:08