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Ethena Labs Launches USDtb, Backed by BlackRock’s BUIDL Fund
On December 16th, Ethena Labs successfully launched USDtb, a novel stablecoin solution backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL). This development marks a significant milestone in the rapidly evolving stablecoin ecosystem.
USDtb is designed to operate similarly to established fiat-backed stablecoins such as USDC and USDT. The platform boasts a unique feature, where 90% of its overall backing comes from BUIDL, positioning it as the largest BUIDL-backed stablecoin to date. USDtb has undergone rigorous audits from top-tier security firms like Code4rena, Quantstamp, Cyfrin, and Pashov, demonstrating Ethena’s commitment to transparency and security.
USDtb is touted as a distinct offering within Ethena’s stablecoin ecosystem, as it is not directly correlated with USDe. This separation enables the platform to provide an alternative yield-bearing stablecoin option for users, mitigating potential risks associated with existing solutions. Furthermore, USDtb has the potential to exceed $100 billion in total value locked (TVL), highlighting its scalability.
USDtb’s introduction is expected to positively impact Ethena’s operations during bearish market conditions. According to Seraphim Czecker, Head of Growth at Ethena Labs, prolonged periods of negative funding rates are no longer a concern for the platform. The ability to allocate capital to USDtb has enabled Ethena to establish a yield “floor” tied to the T-Bill rate, ensuring a stable APY even in unfavorable market environments.
With USDtb’s successful launch, the door is now open for further innovation and growth within the stablecoin space.
Source: cryptopotato.com
