Ethena Labs has unveiled its new stablecoin, USDtb, which will rely on BlackRock’s tokenized USD Institutional Digital Liquidity Fund (BUIDL) for 90% of its backing. The announcement, made on Dec. 16, was facilitated by Securitize.
A Unique Risk Profile and Backing Asset
USDtb will function independently of Ethena’s algorithmic stablecoin, USDe. This offers users and exchange partners a stablecoin with a distinct risk profile. Additionally, Ethena’s Risk Committee has approved USDtb as a potential backing asset for USDe. This decision strengthens Ethena’s ability to handle market volatility.
USDtb’s Role in Spark’s Tokenization Grand Prix
The stablecoin will play a pivotal role in Spark’s $1 billion Tokenization Grand Prix. The initiative directs incentives towards the adoption of USDtb, further enhancing tokenization efforts across the blockchain ecosystem.
Multichain Functionality and Liquidity Support
USDtb is built as a LayerZero Omnichain Fungible Token (OFT). This allows users to transfer it across various blockchains like Ethereum, Base, Solana, and Arbitrum. Liquidity for USDtb will be supported by leading market makers such as Jump, Cumberland, Wintermute, Amber, GSR, and SCB Limited.
Strengthening the Stablecoin Market with BUIDL
Ethena’s collaboration with BlackRock’s BUIDL represents a major step forward in stablecoin development. BUIDL combines the stability of traditional finance with blockchain efficiency. As of Dec. 16, BUIDL has reached a market cap of $562 million, proving its value as a strong asset in digital finance.
USDe’s Rapid Growth and Yield Opportunities
USDtb strengthens Ethena’s position in the stablecoin market, following the success of its algorithmic stablecoin, USDe. In the past 30 days, USDe’s market cap grew by 93%, reaching $5.6 billion, making it the third-largest stablecoin. This growth is linked to USDe’s value accrual mechanism, offering stakers a 27% annual percentage yield (APY).
The DeFi and TradFi Intersection: BlackRock’s Expanding Role
Other decentralized finance (DeFi) platforms are also exploring BlackRock’s BUIDL. For instance, Aave proposed a new GHO Stability Module (GSM) based on BUIDL on Aug. 26. This module helps maintain the peg of Aave’s stablecoin, GHO.
Furthermore, BlackRock plans to expand BUIDL’s use by allowing its tokenized fund shares to serve as collateral for derivatives trading. This expansion would connect the trillion-dollar derivatives market with the emerging tokenized money funds sector, valued at $3 billion as of Dec. 16.
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