- Ethena Labs unveils USDtb, a stablecoin backed by BlackRock’s BUIDL Fund.
- USDtb allocates 90% of its reserves to BlackRock, ensuring stability and scalability.
- The stablecoin offers a unique risk profile, supporting Ethena’s flagship token, USDe.
- USDtb will serve as collateral for margin trading and enhance liquidity in volatile markets
Ethena Labs has officially entered the stablecoin race with the launch of USDtb, a fiat-backed stablecoin powered by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL). This strategic move marks a significant step in expanding Ethena’s financial ecosystem while delivering a new layer of stability to the market.
The company announced the launch on its Twitter page, revealing details about the partnership with BlackRock and Securitize, a leader in tokenizing real-world assets.
https://x.com/ethena_labs/status/1868657723799470361
“Today we are launching our new stablecoin product, USDtb, backed by @BlackRock’s BUIDL Fund in partnership with @Securitize,” Ethena Labs shared.
What Makes USDtb Different?
At its core, USDtb functions like traditional stablecoins such as USDT (Tether) and USDC (Circle). Each USDtb token is backed 1:1 by cash and cash-equivalent reserve assets, providing a reliable store of value.
https://x.com/pnxgrp/status/1868668884514943208
However, what sets USDtb apart is its 90% reserve allocation to BlackRock’s BUIDL Fund — the highest backing of any stablecoin currently on the market.
The BUIDL Fund primarily invests in:
- Short-term U.S. Treasury bills,
- Cash, and
- Repurchase agreements.
This heavy allocation to BlackRock’s fund gives USDtb a distinct edge, offering:
- Enhanced stability in volatile markets,
- Scalability, and
- A separate risk profile compared to Ethena’s flagship token, USDe.
Why USDtb Matters for Ethena Labs
https://x.com/CryptosR_Us/status/1868658614615019907
The launch of USDtb isn’t just about adding another stablecoin to the market — it’s a strategic move to solidify the Ethena ecosystem.
- USDe and USDtb: Ethena’s original stablecoin, USDe, generates yield by shorting major assets like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). However, USDe’s performance can be hit hard during market downturns and negative funding rates. To solve this, Ethena’s Risk Committee approved USDtb as a backup asset for USDe. This means Ethena can reallocate reserves when needed, offering a more robust cushion during uncertain times.
- New Collateral Option: USDtb is also positioned to serve as an alternative collateral option for margin trading on centralized exchanges. This additional utility will boost liquidity and attract more traders to the ecosystem.
- Top-Tier Security: To ensure the safety of USDtb reserves, Ethena Labs has partnered with trusted third-party custodians, including Copper, Zodia Custody, Komainu, and Coinbase Institutional.
Ethena Labs Joins the Stablecoin Race
https://x.com/Crypto_Briefing/status/1868673258209583144
The launch of USDtb puts Ethena Labs in the company of major players like Ripple Labs, which is also rolling out its own stablecoin. As demand for stablecoins grows, their role as reliable digital assets pegged 1:1 to fiat currency becomes increasingly vital.
Stablecoins like Tether (USDT), Circle’s USDC, and PayPal’s PYUSD are already leading the charge. With USDtb, Ethena Labs has introduced a unique offering that combines traditional financial stability (thanks to BlackRock) with innovative crypto utility.
