Ethena Launches Game-Changing USDtb Stablecoin Backed by BlackRock's Tokenized Assets

In a bold move to enhance stability within the decentralized finance (DeFi) space, Ethena has unveiled its new stablecoin, USDtb, aimed at keeping the protocol's flagship token, USDe, steady during turbulent crypto market conditions. This announcement comes at a time when demand for stablecoin options is skyrocketing.

USDtb is designed to maintain a consistent value of $1, with an impressive 90% of its reserves anchored in BUIDL, a tokenized money market fund created in collaboration between asset management giant BlackRock and the tokenization firm Securitize. This strategic backing is expected to reassure users amid fluctuating market dynamics.

Ethena's founder, Guy Young, articulated the vision behind the launch: “With the accelerating demand for various stablecoin choices, we recognized a significant opportunity to introduce a product with a unique risk profile. Our aim is to keep users within our trusted ecosystem while offering them something new.”

Ethena has gained substantial traction since its public launch in early 2024, amassing nearly $6 billion in user funds. Its flagship token, USDe, branded as a “synthetic dollar,” typically provides a stable $1 value. Capitalizing on market volatility, USDe invests by shorting major cryptocurrencies like Bitcoin (BTC), Ether (ETH), and Solana (SOL), while leveraging funding rates for lucrative yields—currently an eye-popping 27% annualized during bullish market phases. However, as many investors know, these strategies can quickly backfire in bearish markets, leading to negative funding rates and potential losses.

USDtb offers a smart solution for mitigating these risks. The Ethena team explained that it will permit the closure of the derivatives positions tied to USDe, allowing for a smoother transition of backing assets to USDtb during challenging market conditions.

Moreover, Ethena has ambitious plans for USDtb, aspiring for it to be recognized as collateral for margin trading on centralized exchanges in the future.

To safeguard the new stablecoin, Ethena has enlisted a team of renowned custodians, including Copper, Zodia Custody, Komainu, and Coinbase Institutional. Liquidity providers such as Jump, Cumberland, Amber Group, GSR Markets, and SCB Limited will also help ensure the marketplace viability of USDtb.

In a further indication of its seriousness, Ethena has applied to Sky’s Tokenization Gran Prix program, initially from MakerDAO, which aims to invest up to a staggering $1 billion in tokenized real-world asset (RWA) products, positioning itself as a front runner in the rapidly evolving landscape of crypto finance.

Watch Out! This new development could redefine the stability of your DeFi investments! Are you ready to adapt to these exciting changes?