Ethena Launches Stablecoin USDtb with Support from BlackRock’s BUIDL Fund
- USDtb is backed by BlackRock's BUIDL fund.
- Ethena reinforces liquidity with 90% in safe assets.
- Stablecoin aims to attract institutional investors to DeFi.
Ethena, one of the most promising decentralized finance (DeFi) platforms of 2024, has officially announced the launch of its stablecoin USDtb, marking a significant step forward in diversifying its offering. The new coin is fully backed by the BUIDL fund, managed by BlackRock, and aims to meet the growing demand for more stable options in the cryptocurrency market.
Today we are launching our new stablecoin product, USDtb, backed by @BlackRock 's BUIDL Fund in partnership with @Securitize
Read below for full details👇 pic.twitter.com/mSf3mWv3oF
— Ethena Labs (@ethena_labs) December 16, 2024
USDtb stands out by keeping 90% of its reserves in the BUIDL fund, which invests in short-term US Treasury bonds, cash and repo operations, ensuring greater security and stability for its users. The remaining 10% is allocated to other stablecoins to facilitate redemptions and add liquidity to the system, allowing the currency to maintain its 1:1 peg to the US dollar.
Unlike Ethena’s USDe token, which uses derivatives-based strategies to generate yield, USDtb offers a more predictable risk profile. This distinction makes the stablecoin an attractive choice for investors looking to minimize exposure to market swings.
According to Guy Young, founder of Ethena, “The accelerated demand for different stablecoin options has created a clear opportunity for us to introduce a product that offers a completely different risk profile than USDe, without requiring users to leave the trusted Ethena ecosystem.”
USDtb’s launch was bolstered by strategic collaborations with renowned institutions such as Securitize, which issued the tokenized BUIDL fund, and custodians such as Copper, Zodia Custody, Komainu, and Coinbase Institutional. Additionally, Ethena submitted a proposal for USDtb to be included in Sky’s $1 billion investment program, which supports real-world tokenized assets.
Another highlight is the possibility of USDtb being accepted as collateral for trading on centralized exchanges in the future, further expanding its usefulness in the cryptocurrency market.
With the introduction of this new stablecoin, Ethena seeks to solidify its position as a leader in the DeFi sector, ensuring greater stability for its users and exploring new avenues of innovation in the crypto market.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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