Published by Ethena Institute Launch of USDtb stablecoin powered by BlackRock technology The USD Institutional Digital Liquidity Fund (BUIDL), a tokenized fund, accounts for 90% of the support.
The partnership was facilitated by Securitize, according to a Dec. 16 announcement.
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 approved USDtb as a potential backing asset for USDe, strengthening its ability to weather volatile market conditions.
As Spark’s $1 Billion Tokenization Grand Prize touts incentives toward stablecoins, USDtb’s design provides flexibility and risk mitigation across Ethena’s ecosystem and beyond . This initiative will accelerate tokenization efforts.
Additionally, USDtb is multi-chain in nature, built as LayerZero’s Omnichain Fungible Token (OFT). Users can transfer USDtb between various blockchains such as Ethereum, Base, Solana, and Arbitrum.
USDtb liquidity is supported by prominent market makers including: jumpCumberland, winter muteAmber, GSR, SCB Limited.
In particular, Ethena Labs’ move represents a significant step forward for stablecoins that combine the stability of traditional finance with the efficiency and scalability of blockchain. BlackRock’s BUIDL currently has a market capitalization of nearly $562 million.
Furthermore, following the success of Ethena, we will solidify Ethena’s position in the stablecoin market. Algorithmic stablecoin USDe has grown 93% in the past 30 days, reaching a market cap of $5.6 billion, making it the third largest stablecoin on the market.
This growth may be closely tied to USDe’s value generation mechanism, which gives stakers a 27% annual percentage yield (APY) at the time of writing.
TradFi meets DeFi
In addition to Ethena Labs, other DeFi protocols are also considering using BUIDL.
Money market platform Aave proposed The new GHO Stability Module (GSM), based on BlackRock’s tokenized funds, was released on August 26th. Aave created GSM to keep the ecosystem pegged to GHO, a stablecoin.
On the other hand, Blackrock Plans to expand BUIDL service for traditional financial giants. The asset manager is considering using tokenized fund shares as collateral for derivatives transactions.
Such a movement is It connects the multitrillion-dollar derivatives market to the nascent tokenized money fund sector, which was worth about $3 billion as of Dec. 16.
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