Ethena Launch New Stablecoin UStb Backed by BlackRock BUIDL Fund
Ethena Collaborates with BlackRock and Securitize to Introduce UStb
Ethena is set to introduce a new stablecoin, UStb, in collaboration with BlackRock and Securitize. This new stablecoin will be backed by BlackRock’s tokenized USD Institutional Digital Liquidity Fund (BUIDL), which has grown significantly since its launch in March. BUIDL, which is tokenized on Ethereum, invests in U.S. dollars, short-term U.S. Treasury bills, and repurchase agreements, making it the largest tokenized U.S. Treasuries fund with over $522 million in assets under management.
Ethena’s existing decentralized synthetic dollar, USDe, has become the fifth-largest stablecoin with a $2.6 billion circulating supply. The new UStb will exist as an independent product, offering an alternative risk profile compared to USDe.
Ethena Collaborates with BlackRock and Securitize
Ethena’s UStb stablecoin is designed to function similarly to traditional stablecoins, investing its reserves in BlackRock’s BUIDL fund. The tokenized government securities market, which includes investments from BlackRock, Hamilton Lane, and KKR, now totals more than $2 billion. Securitize, which facilitates over $950 million in tokenized investments, plays a crucial role in this collaboration.
According to Ethena Labs, UStb will offer users and exchange partners a new product with a differentiated risk profile compared to USDe. This move aims to address concerns over USDe’s response to negative funding rate environments. Despite challenging market conditions over the last six months, USDe has not experienced a single week of negative funding.
USDe and UStb: Complementary Stablecoins
Ethena Labs stated that USDe could benefit from incorporating UStb during periods of weak funding conditions. The addition of UStb would allow Ethena to dynamically adjust USDe’s backing composition between basis positions and liquid stable products, potentially closing hedging positions and reallocating assets to UStb if necessary.
Additionally, Ethena plans to expand its collateral offerings on centralized exchanges beyond existing integrations with Bybit and Bitget. This expansion will provide exchange partners with the choice of two distinct products for margin collateral.
Ethena Labs promised to provide updates on new exchange integrations and the expected timelines for UStb’s launch shortly.
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