Ethena Labs officially launched USDtb, a new stablecoin backed by BlackRock\u2019s USD Institutional Digital Liquidity Fund (BUIDL), on December 16th.<\/p>\n
Developed in partnership with Securitize, USDtb is designed to operate like existing fiat-backed stablecoins such as USDC and USDT, with reserves invested in cash or cash-equivalent assets to maintain a 1:1 value ratio.<\/p>\n
According to the official blog post<\/a>, the stablecoin\u2019s primary reserve asset, BUIDL, makes up 90% of USDtb\u2019s overall backing, positioning it as the highest BUIDL-backed stablecoin to date. USDtb is independent of Ethena\u2019s USDe, thereby providing users with an alternative stablecoin offering a distinct risk profile.<\/p>\n Additionally, USDtb is expected to improve USDe\u2019s resilience in volatile market conditions by potentially serving as a backup asset during periods of negative funding rates. The product has passed extensive audits from leading security firms such as Code4rena, Quantstamp, Cyfrin, and Pashov. It is being considered for inclusion in Spark\u2019s $1 billion Tokenization Grand Prix.<\/p>\n Ethena has tapped Copper, Zodia Custody, Komainu, and Coinbase Institutional to serve as custodians for its newly launched USDtb stablecoin. The token\u2019s liquidity will be supported by major providers, including Jump, Cumberland, Amber Group, GSR Markets, and SCB Limited.<\/p>\n Jos\u00e9 Maria Macedo, co-founder of blockchain research and development firm Delphi Labs, predicts<\/a> that USDtb will become the largest on-chain tokenized treasury product within a month of its launch. Highlighting the significance for Ethena, Macedo noted that USDtb not only provides a \u201clower-risk\u201d yield-bearing stablecoin option but also strengthens Ethena\u2019s existing USDe stablecoin.<\/p>\n The exec even went on to say that during periods when funding rates fall below treasury rates, Ethena can close out hedging positions and reallocate assets to USDtb. This approach reduces USDe\u2019s<\/a> exposure to negative funding rate concerns while ensuring that its floor yield matches the treasury rate.<\/p>\n Meanwhile, Seraphim Czecker, Ethena\u2019s head of growth, spoke<\/a> about the impact of USDtb on Ethena\u2019s operations, particularly in bearish market conditions. He explained that prolonged periods of negative funding rates no longer pose a threat to Ethena, as the platform can now allocate capital to its own real-world asset-backed stablecoin, USDtb.<\/p>\n This effectively establishes a yield \u201cfloor\u201d tied to the T-Bill rate, ensuring a stable APY even in unfavorable market environments. Czecker further highlighted USDtb\u2019s scalability, noting its potential to exceed $100 billion in total value locked (TVL).<\/p>\n The post Ethena Labs Launches USDtb, Backed by BlackRock\u2019s BUIDL Fund<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Ethena Labs officially launched USDtb, a new stablecoin backed by BlackRock\u2019s USD Institutional Digital Liquidity Fund (BUIDL), on December 16th. Developed in partnership with Securitize, USDtb is designed to operate like existing fiat-backed stablecoins such as USDC and USDT, with reserves invested in cash or cash-equivalent assets to maintain a 1:1 value ratio. USDtb Debuts […]<\/p>\n","protected":false},"author":0,"featured_media":29295,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-29294","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/29294"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=29294"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/29294\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/29295"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=29294"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=29294"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=29294"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}USDtb\u2019s Impact on Ethena\u2019s Stablecoin Ecosystem<\/h2>\n