Ethena Introduces Stablecoin Backed by BlackRock’s BUIDL

Ethena Labs, the issuer of USDe, has launched the stablecoin USDtb in collaboration with Securitize, a platform specializing in the tokenization of real-world assets (RWA).

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 maintains its peg to $1 by concentrating 90% of its reserves in BlackRock USD Institutional Digital Liquidity (BUIDL).

BUIDL holds funds in US dollars, short-term treasury bills, and REPO agreements. Since its launch in March, the fund’s AUM has grown rapidly, making it one of the largest in its segment (~$561 million).

“Amid growing demand for various stablecoin options, we saw an opportunity to create a new product with a completely different risk profile than USDe, without leaving our reliable ecosystem,” explained Ethena founder Guy Young.

The new offering will allow Ethena to close derivative positions in USDe and redirect underlying assets into USDtb during periods of negative funding rates.

The company also plans to use the new stablecoin as an alternative to USDe for margin collateral on centralized exchanges like Bybit and Bitget, with which it has already established partnerships.

The custodians of USDtb will include Copper, Zodia Custody, Komainu, and Coinbase Institutional.

Market makers will be Jump, Cumberland, Amber Group, GSR Markets, and SCB Limited.

Ethena has applied for USDtb to participate in Sky’s (formerly MakerDAO) Tokenization Grand Prix program, which aims to invest up to $1 billion in RWA.

Back in November 30, a project linked to Donald Trump, World Liberty Financial (WLF), acquired $500,000 worth of native ENA tokens from Ethena Labs.