Ethena Labs has launched a new stablecoin called USDtb, which is backed by BlackRock's BUIDL fund and Securitize, seeking to offer stability and security to TradFi participants interested in exploring the crypto world.
USDtb is the new BUIDL-backed stablecoin from Ethena Labs, the developer of the DeFi protocol Ethena, which is behind the “synthetic dollar” of $ 6.000 million dollars.
Ethena Labs’ new stablecoin is designed to stabilize its USDe token, the protocol’s native stablecoin, in bear markets. According to its developers, USDtb is 90% backed by BlackRock’s BUIDL fund, which will ensure its stability while also offering a safe and reliable alternative for those looking to participate in the growing DeFi ecosystem.
Charles Yu, Head of Research at Galaxy Digital, highlighted that this launch not only marks an evolution in the stablecoin ecosystem, but also represents an innovation in the way traditional finance (TradFi) and decentralized finance (DeFi) can integrate more efficiently and securely.
USDtb: An innovative stablecoin backed by tokenized US Treasury funds
USDtb is a stablecoin designed to offer stability and security to users, backed primarily by the Ethereum tokenized fund that invests in Treasury bonds.
On X, the protocol developers explained that their new stablecoin “works like a traditional stablecoin like USDC or USDT, using cash and cash-equivalent reserve assets to back each token.” However, what’s new about USDtb lies in its backing, which consists of 90% BUIDL, issued by BlackRock.
“Blackrock’s BUIDL represents the vast majority of USDtb’s backing, currently the highest BUIDL allocation of any stablecoin on the market,” Ethena Labs commented.
BUIDL is a financial product that enables the tokenization of traditional assets, meaning that US Treasury funds are converted into digital tokens that can be used on the Ethereum blockchain.
A reliable and scalable stablecoin
According to Ethena Labs, using BUIDL as the primary backing ensures that USDtb maintains its stabilized value, minimizing the risks associated with market fluctuations. Additionally, the 10% backing of the new stablecoin in USDC provides additional liquidity and immediate redemption capability, which is crucial during periods of high volatility or weekends.
On the other hand, the developers highlighted that USDtb represents a significant innovation in the DeFi ecosystem, by combining the stability of traditional assets with the flexibility and transparency of blockchain technology. This integration allows Ethena Labs to offer more robust and secure financial products for traditional investors who want to join the digital ecosystem. Ethena Labs' head of research said Galaxy Digital said the new stablecoin could help these investors feel comfortable with USDe and understand the on-chain opportunities this digital asset offers in innovative protocols such as Aave, Sky (formerly MakerDAO), among others.
“USDtb exists as a completely separate product from USDe, offering users and exchange partners a new option for their stablecoin needs that carries a completely different risk profile compared to USDe.”, Ethena commented.
Furthermore, the involvement of BlackRock, one of the most respected financial institutions in the world, in the creation of USDtb adds a level of trust and credibility to the stablecoin. For experts, this is especially important to attract investors and users who are skeptical about cryptocurrencies but are interested in exploring the opportunities offered by the decentralized finance ecosystem.
Ethena seeks to integrate its stablecoins as margin collateral
On the other hand, the developers of the DeFi protocol Ethena said that they aim to integrate USDtb alongside USDe on exchanges and trading platforms as margin collateral. USDe is Ethena's "synthetic dollar", which already has surpassed DAI as the largest decentralized stablecoin on the market, while USDtb will act as a reserve asset for USDe.
While Galaxy Digital believes that traditional investors and TradFi participants are likely to prefer using BUIDL directly as a more conservative option over using USDtb, the launch of this stablecoin could offer significant risk protections to Ethena as the protocol continues its mission to improve trading experiences and unlock new capabilities that traditional stablecoins cannot offer in the crypto world.
