Ethena Labs Launches USDtb: A Stablecoin Backed by BlackRock

Ethena Labs, a leader in innovative financial technology, has officially unveiled USDtb, a stablecoin backed by BlackRock’s USD Institutional Digital Liquidity Fund. The launch marks a significant step forward in the evolution of fiat-backed digital assets, blending traditional finance with blockchain technology.

USDtb: Stability Redefined

USDtb operates on the same principle as popular fiat-backed stablecoins such as USD Coin (USDC) and Tether (USDT), maintaining a 1:1 reserve ratio with cash or cash-equivalent assets. However, USDtb sets itself apart by allocating a staggering 90% of its reserves to BlackRock’s BUIDL Fund, a tokenized money market fund.

The BUIDL Fund primarily invests in short-term U.S. Treasury bills, cash, and repurchase agreements, offering a high degree of stability and scalability. According to Ethena, this is the largest BUIDL allocation for any stablecoin, positioning USDtb as a robust option in the stablecoin market.

Partnerships and Tokenization Leadership

USDtb’s launch is being executed in collaboration with Securitize, a prominent player in the tokenization of real-world assets. Ethena’s new stablecoin is tailored as a traditional fiat-backed asset, offering a distinct risk profile compared to its existing flagship product, USDe.

While USDe uses a derivative-based strategy to maintain its peg to the U.S. dollar, USDtb provides a more resilient and straightforward alternative, especially during periods of market volatility.

Strengthening Ethena’s Financial Ecosystem

The introduction of USDtb aligns with Ethena’s broader strategy to create a more resilient ecosystem capable of withstanding volatile market conditions. Ethena’s Risk Committee has approved USDtb as a backup asset for USDe, providing additional security and flexibility.

Moreover, USDtb is expected to serve as an alternative collateral option for margin trading on centralized exchanges, broadening its utility in the cryptocurrency space.

Custodians and Regulatory Compliance

To ensure the security of its reserves, Ethena has partnered with industry-leading custodians, including Copper, Zodia Custody, Komainu, and Coinbase Institutional. These partnerships are critical for safeguarding assets and maintaining trust in USDtb.

Additionally, Ethena has submitted USDtb for inclusion in Sky’s $1 billion Tokenization Grand Prix, a competition designed to support projects focused on tokenizing real-world assets.

The launch follows rigorous audits conducted by top firms like Pashov, Quantstamp, and Cyfrin, which confirmed the token’s security and reliability.

A Game-Changer for Stablecoins

USDtb’s reliance on BlackRock’s BUIDL Fund not only enhances its scalability and stability but also bridges the gap between traditional financial markets and blockchain technology. By combining Ethena’s innovative ecosystem with the credibility of BlackRock’s financial instruments, USDtb has the potential to redefine how stablecoins operate in the broader financial landscape.

As Ethena Labs continues to innovate and expand its offerings, the launch of USDtb underscores its commitment to providing secure, reliable, and versatile financial solutions in the digital age.