Ethena Labs the launch of its USDtb stablecoin, which will leverage BlackRock’s USD Institutional Digital Liquidity Fund, USD Institutional Digital Liquidity Fund for 90% of the fund’s backing.
Securitize was the facilitator of the partnership according to the announcement from Dec. 16,
USDtb will operate independently from Ethena’s existing algorithmic stablecoin, USDe, providing users and exchange partners with a stablecoin featuring a differentiated risk profile. Ethena’s Risk Committee also approved USDtb to be a possible backing asset for USDe. This will enhance its ability navigate volatile market conditions.
USDtb design provides flexibility and risk mitigation across Ethena’s ecosystem and beyond, as Spark’s $1 billion Tokenization Grand Prix touts directing incentives towards the stablecoin. The project will increase tokenization.
Additionally, USDtb is inherently multichain, built as LayerZero’s Omnichain Fungible Token (OFT). USDtb can be transferred between various blockchains such as Ethereum Base Solana Arbitrum.
USDtb’s liquidity will be supported by prominent market makers, including Jump, Cumberland, WintermuteAmber, GSR and SCB Limited.
Notably, Ethena Labs’s move represents a significant step forward for stablecoins, which combine the stability of traditional finance with the efficiency and scalability of blockchain. BlackRock’s BUIDL currently has a market cap of nearly $562 million.
Furthermore, it solidifies Ethena’s position in the stablecoin market following the success of its algorithmic stablecoin USDe, which grew 93% over the past 30 days to hit a $5.6 billion market cap — making it the third-largest stablecoin in the market.
At the time this article was published, USDe’s value accumulation mechanism gave USDe holders a yield of 27% APY (annual percentage yield).
TradFi meets DeFi
BUIDL could be used by other DeFi protocols besides Ethena Labs.
Aave, Money market platform The following is a list of suggested alternatives to the word “the” a new GHO Stability Module (GSM) on Aug. 26 based on BlackRock’s tokenized fund. Aave developed the GSM in order to maintain the stablecoin GHO of their ecosystem.
BlackRock Plan to expand BUIDL offers for the traditional finance giants. Asset manager considers using tokenized shares as collateral in derivatives trades.
A move like this would not be acceptable Connect the trillion-dollar derivatives markets to the tokenized money fund sector that is only about $3 billion as of December 16.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
