Ethena Labs has launched a new stablecoin called USDtb, which will be backed by 90% of BlackRock’s tokenized fund, the USD Institutional Digital Liquidity Fund (BUIDL). This partnership was facilitated by Securitize and aims to provide users and exchange partners with a stablecoin that offers a different risk profile from Ethena’s existing algorithmic stablecoin, USDe.
The design of USDtb allows for flexibility and risk mitigation within Ethena’s ecosystem and beyond, with incentives being directed towards the stablecoin through Spark’s $1 billion Tokenization Grand Prix. USDtb is also multichain, allowing users to transfer it across various blockchains including Ethereum, Base, Solana, and Arbitrum. It will be supported by top market makers such as Jump, Cumberland, Wintermute, Amber, GSR, and SCB Limited.
The launch of USDtb marks a significant advancement for stablecoins, combining traditional finance stability with the efficiency and scalability of blockchain technology. BlackRock’s BUIDL currently has a market cap of nearly $562 million, further solidifying Ethena’s position in the stablecoin market following the success of USDe, which has a market cap of $5.6 billion and is the third-largest stablecoin in the market.
Ethena’s success with USDe can be attributed to its value accrual mechanism, offering stakers a 27% annual percentage yield (APY). The growth of USDe has caught the attention of other DeFi protocols, with Aave considering tapping into BlackRock’s BUIDL for its own stability module (GSM) to maintain the peg of its stablecoin, GHO. BlackRock is also looking to expand its BUIDL offering to traditional finance giants by using the shares of its tokenized fund as collateral for derivatives trading, bridging the gap between the derivatives market and the tokenized money funds sector.
Overall, the launch of USDtb by Ethena Labs represents a significant step forward for stablecoins and DeFi protocols alike. The partnership with BlackRock’s BUIDL brings together the best of traditional finance and blockchain technology, creating opportunities for enhanced stability, flexibility, and growth within the digital asset space. With the support of market makers and growing interest from other DeFi platforms, USDtb is poised for success in the evolving landscape of decentralized finance.
