Ethena Labs, the company that issues the decentralized stablecoin USDe, announced on Thursday that it will partner with asset management company Blackrock and real-world asset tokenization company Securitize to launch a tokenized Treasury bond fund issued by Blackrock The new stablecoin supported by BUIDL is called UStb.
We are excited to announce Ethena's newest product offering: UStbUStb will be fully backed by @Blackrock BUIDL in partnership with @Securitize, enabling a separate fiat stablecoin product alongside USDeDetails below on why this is important: pic.twitter.com/jOIoMef7W3
— Ethena Labs (@ethena_labs) September 26, 2024
According to the announcement, UStb will function the same as a traditional stablecoin, and Ethena Labs intends to invest the reserves of the stablecoin in BUIDL issued by BlackRock on Ethereum. The BUIDL fund invests 100% of its total assets in cash, U.S. Treasuries and repurchase agreements, and since its launch in March of this year, BUIDL has rapidly grown to become the largest tokenized U.S. Treasury fund with over $522 million in assets under management.
Ethena Labs wrote in the announcement: “UStb will exist as a completely independent product, providing users and exchange partners with new options to meet their needs for stablecoins. Compared with USDe, UStb has the same features as USDe. Different risk profiles.
Ethena Labs also noted that UStb could also help USDe better cope with difficult market conditions. If Ethena's governance deems it necessary and appropriate, Ethena will be able to close USDe-related hedging positions during periods of negative funding rates and reallocate its supporting assets to UStb to further reduce related risks.
Ethena Labs plans to enable UStb to serve as an alternative to USDe as margin collateral on partnering centralized exchanges (currently including Bybit and Bitget). Information on the launch timing of UStb and its integration with exchanges will be released in the coming weeks.
Securitize, which cooperated with Ethena to issue UStb, has led to more than US$950 million in tokenized investment. In May this year, the company announced the completion of a US$47 million strategic financing led by BlackRock. Alternative investment management companies Hamilton Lane, ParaFi Capital, Tradeweb Markets, Aptos Labs, Circle and Paxos also participated in the round.
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