TL;DR
Ethena has launched its much-anticipated stablecoin, USDtb, backed by BlackRock’s BUIDL fund, marking a significant milestone for the company.
USDtb is designed to provide a stable and secure digital asset, with over 90% of its reserves held in BlackRock’s BUIDL fund and the remaining 10% in stablecoins to facilitate redemptions.
Ethena’s USDtb offers a more stable and reliable option compared to its synthetic dollar token, USDe, and is supported by strategic partnerships with Securitize, Copper, Zodia Custody, Komainu, and Coinbase Institutional.
Ethena, a prominent player in the decentralized finance (DeFi) sector, has officially launched its much-anticipated stablecoin, USDtb. This new stablecoin is backed by BlackRock’s BUIDL fund, marking a significant milestone for Ethena as it diversifies its offerings.
The launch was announced on December 16, 2024, and has already garnered significant attention within the crypto community.
https://twitter.com/ethena_labs/status/1868657723799470361
Backing and Security
USDtb is designed to provide a stable and secure digital asset, with over 90% of its reserves held in BlackRock’s BUIDL fund. The BUIDL fund primarily invests in short-term U.S. government debt, cash, and repos, ensuring a high level of security and stability for USDtb holders.
The remaining 10% of the reserves are held in stablecoins to facilitate redemptions and provide additional liquidity. This structure aims to maintain a 1:1 peg to the U.S. dollar, similar to traditional stablecoins like USDC and USDT.
Differentiation from USDe
Ethena’s flagship synthetic dollar token, USDe, operates on a derivative-based trading strategy, which can lead to volatility during market fluctuations. In contrast, USDtb offers a differentiated risk profile by being fully backed by reserve assets.
This makes USDtb a more stable and reliable option for users seeking a secure digital asset. Ethena plans to use USDtb as a reserve asset for USDe, providing a safe haven during periods of negative funding rates.
Ethena’s Strategic Partnerships
The launch of USDtb is supported by strategic partnerships with Securitize, which issues the BlackRock USD Institutional Digital Liquidity Fund. Additionally, Ethena has enlisted Copper, Zodia Custody, Komainu, and Coinbase Institutional as custodians for USDtb. These partnerships ensure the secure management and custody of USDtb reserves, further enhancing the stablecoin’s credibility and reliability.
Ethena’s introduction of USDtb is a response to the growing demand for diverse stablecoin options within the DeFi ecosystem. By offering a stablecoin backed by a reputable fund like BlackRock’s BUIDL, Ethena aims to attract institutional investors and provide a reliable digital asset for the broader crypto market.