This stablecoin is backed by BlackRock’s BUIDL token, a money market fund tokenized with the help of Securitize.
The big idea? To help Ethena stay steady when crypto markets get shaky.
Keeping Things Stable
The new USDtb token aims to keep its price pegged at $1, no matter what happens in the crypto market. How? By holding 90% of its reserves in BUIDL, a token tied to real-world assets managed by BlackRock, one of the largest asset managers in the world.
Guy Young, Ethena’s founder, said, “We saw an opportunity to offer a new stablecoin with a different level of risk while keeping users within our ecosystem.” In other words, this token gives investors another tool in their toolbox, especially when markets take a downturn.
Congratulations to @Ethena_Labs on the launch of USDtb!
We’re proud to see @BlackRock’s BUIDL Fund, tokenized by Securitize, serving as the cornerstone of USDtb’s reserve assets. This milestone underscores the growing potential of tokenization to bridge traditional finance… https://t.co/acAwe0XCxt
— Securitize (@Securitize) December 16, 2024
Why Is This a Big Deal?
Ethena’s current flagship token, USDe, works like a “synthetic dollar.” It generates profits by shorting perpetual swaps for Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) while farming funding rates. That’s a fancy way of saying USDe earns money when the market is hot. But when markets turn bearish (falling prices), this strategy can cause money to be lost fast.
Ethena has a backup plan with USDtb. When funding rates go negative—or the market looks gloomy—Ethena can close risky positions and move assets into USDtb. This new system could help Ethena ride out storms without losing its footing.
USDtb functions like a traditional stablecoin such as USDC or USDT, utilizing cash and cash-equivalent reserve assets to back each token
Blackrock’s BUIDL represents the vast majority of the USDtb backing, currently the highest BUIDL allocation of any stablecoin in the market…
— Ethena Labs (@ethena_labs) December 16, 2024
Ethena also has big plans for USDtb. The protocol wants USDtb to be used as collateral for trading on centralized exchanges. Think of it like this: If you want to borrow funds or trade on a platform, you’d be able to use USDtb as a secure deposit. On top of that, Ethena has applied for a spot in Sky’s $1 billion tokenized asset investment plan, which could bring even more value to USDtb.
Ethena’s Rapid Rise
Ethena has been turning heads this year. Since its launch in early 2024, the platform has attracted nearly $6 billion in user funds. Its main token, USDe, has been a hit with investors looking for high yields—currently around 27% annualized. But the risks are clear when markets flip.
You must not be afraid to dream a little bigger, darling pic.twitter.com/CmLUUuQqWx
— Ethena Labs (@ethena_labs) December 13, 2024
The introduction of USDtb helps Ethena prepare for rough waters while offering users a safer option. Over the weekend, the protocol’s governance token ENA got an extra boost after Donald Trump-affiliated World Liberty Financial invested in it.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
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