Ethena Labs announced the launch of its USDtb stablecoin, which will leverage  BlackRock’s tokenized fund, USD Institutional Digital Liquidity Fund (BUIDL), for 90% of its backing.

According to the Dec. 16 announcement, the partnership was facilitated by Securitize.

USDtb will operate independently from Ethena’s existing algorithmic stablecoin, USDe, providing users and exchange partners with a stablecoin featuring a differentiated risk profile. Ethena’s Risk Committee has also approved USDtb as a potential backing asset for USDe, enhancing its ability to navigate volatile market conditions.  

USDtb design provides flexibility and risk mitigation across Ethena’s ecosystem and beyond, as Spark’s $1 billion Tokenization Grand Prix touts directing incentives towards the stablecoin. The initiative will boost tokenization efforts.

Additionally, USDtb is inherently multichain, built as LayerZero’s Omnichain Fungible Token (OFT). Users can transfer USDtb across various blockchains, such as Ethereum, Base, Solana, and Arbitrum. 

USDtb’s liquidity will be supported by prominent market makers, including Jump, Cumberland, Wintermute, Amber, GSR, and SCB Limited.

Notably, Ethena Labs’s move represents a significant step forward for stablecoins, which combine the stability of traditional finance with the efficiency and scalability of blockchain. BlackRock’s BUIDL currently has a market cap of nearly $562 million.

Furthermore, it solidifies Ethena’s position in the stablecoin market following the succ

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Author: Gino Matos