Optimism Rise for Ethena’s USDtb Stablecoin as Total Value Hits $65 Million on First Day
Ethena's USDtb has already raised over $65 million in total value locked on opening day
DeFi firm Ethena Labs launched its new BlackRock BUIDL-backed stablecoin, USDtb, on December 16, raising $65.4 million in total value locked on the first day.
Ethena's new USDtb stablecoin will work similarly to Tether
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The currency is the US dollar.
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It is also backed by cash or cash equivalents at a 1:1 ratio and can help holders of Ethena’s flagship product, USDe, “weather challenging market conditions.”
“Ethena will be able to close its underlying USDe hedging positions and reallocate its USDtb backing assets to further mitigate the associated risks,” Ethena Labs said in an announcement on Dec. 16.
Source: Ethena Labs
USDtb has already received high praise from Jose Maria Macedo, co-founder of blockchain research and development firm Delphi Labs, who predicted that USDtb will become the largest tokenized treasury product within a month of launch.
Seraphim Cheker, head of growth at Athena, said the USDtb fund has the potential to grow to $100 billion because the firm can now effectively allocate capital in bearish environments by “creating an APY ‘floor’ around the price of treasuries.”
The stablecoin is backed by 90% of BlackRock’s USD institutional digital liquidity fund in partnership with blockchain token firm Securitize.
One of the Ethena committee members, Block Analiticia, noted in the now-approved proposal that stablecoins like USDC would make up the remaining 10% of USDtb reserves, which could help provide additional liquidity during weekends or other times when U.S. Treasury markets are unavailable.
The USDtb smart contract “core” passed three full audits from auditing firms Pashov, Quantstamp, and Cyfrin in October with no high or mid-level scores.
USDtb was given the green light after being approved by Ethena’s risk committee in late September — however, the exact details weren’t finalized until earlier this month.
Cointelegraph has reached out to Ethena Labs for comment.
Related: Ethena Rejects Inaccurate Claims About ENA Token Storage
This comes as Ethena's stablecoin USDe recently surpassed Dai
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To become the third largest stablecoin - after USDT and USDC.
However, USDe's market cap of $5.87 billion is still significantly lower than USDT's $140.6 billion and USDC's $42.1 billion, according to DefiLlama data.
The market cap of stablecoins recently surpassed $200 billion, and crypto asset management firm Bitwise expects that figure to double to $400 billion in 2025, citing the passage of stablecoin legislation in the United States.
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