Ethena Labs Launches USDtb, Backed by BlackRock’s BUIDL Fund

Ethena Labs formally launched USDtb, a brand new stablecoin backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), on December sixteenth.

Developed in partnership with Securitize, USDtb is designed to function like present fiat-backed stablecoins corresponding to USDC and USDT, with reserves invested in money or cash-equivalent property to keep up a 1:1 worth ratio.

USDtb Debuts

Based on the official weblog post, the stablecoin’s main reserve asset, BUIDL, makes up 90% of USDtb’s general backing, positioning it as the best BUIDL-backed stablecoin thus far. USDtb is impartial of Ethena’s USDe, thereby offering customers with another stablecoin providing a definite threat profile.

Moreover, USDtb is predicted to enhance USDe’s resilience in risky market circumstances by doubtlessly serving as a backup asset during times of unfavorable funding charges. The product has handed intensive audits from main safety companies corresponding to Code4rena, Quantstamp, Cyfrin, and Pashov. It’s being thought-about for inclusion in Spark’s $1 billion Tokenization Grand Prix.

Ethena has tapped Copper, Zodia Custody, Komainu, and Coinbase Institutional to function custodians for its newly launched USDtb stablecoin. The token’s liquidity shall be supported by main suppliers, together with Bounce, Cumberland, Amber Group, GSR Markets, and SCB Restricted.

USDtb’s Impression on Ethena’s Stablecoin Ecosystem

José Maria Macedo, co-founder of blockchain analysis and growth agency Delphi Labs, predicts that USDtb will grow to be the biggest on-chain tokenized treasury product inside a month of its launch. Highlighting the importance for Ethena, Macedo famous that USDtb not solely offers a “lower-risk” yield-bearing stablecoin possibility but additionally strengthens Ethena’s present USDe stablecoin.

The exec even went on to say that in durations when funding charges fall beneath treasury charges, Ethena can shut out hedging positions and reallocate property to USDtb. This strategy reduces USDe’s publicity to unfavorable funding fee considerations whereas making certain that its flooring yield matches the treasury fee.

In the meantime, Seraphim Czecker, Ethena’s head of development, spoke in regards to the affect of USDtb on Ethena’s operations, notably in bearish market circumstances. He defined that extended durations of unfavorable funding charges not pose a menace to Ethena, because the platform can now allocate capital to its personal real-world asset-backed stablecoin, USDtb.

This successfully establishes a yield “flooring” tied to the T-Invoice fee, making certain a steady APY even in unfavorable market environments. Czecker additional highlighted USDtb’s scalability, noting its potential to exceed $100 billion in complete worth locked (TVL).