Ethena, a protocol specializing in decentralized stablecoins, plans to launch a new stablecoin called “UStb” via BlackRock and Securitize. This stablecoin will be backed by BlackRock's BUIDL tokenized fund, consisting mainly of US Treasury bills and repurchase agreements.
Soon a new stablecoin from Ethena thanks to BlackRock's BUIDL fund
The Ethena protocol, which offers decentralized stablecoins, is preparing to launch a stablecoin collateralized by BUIDL, the tokenized fund of finance giant BlackRock in partnership with Securitize.
We are excited to announce Ethena's newest product offering: UStb
UStb will be fully backed by @Blackrock BUIDL in partnership with @Securitizeenabling a separate fiat stablecoin product alongside USDe
Details below on why this is important: pic.twitter.com/jOIoMef7W3
— Ethena Labs (@ethena_labs) September 26, 2024
The stablecoin, which will be called “UStb”should “function like a normal stablecoin” and its reserves will therefore be supported by the tokenized fund BUIDL. The latter consists of investments in the US dollar, short-term Treasury bills and repurchase agreements (repo).
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BlackRock's BUIDL fund, tokenized by Securitize, which launched in March 2023, quickly became the largest tokenized U.S. government securities fund, with over $522 million in assets under management.
By investing in U.S. Treasury bills and other money market instruments, BUIDL offers a low risk profile and high liquidity, 2 essential attributes to maintain the stability of UStb.
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Today, BlackRock's BUIDL fund is the most capitalized in its category, despite its late launch. It is followed by BENJI, the tokenized fund of Franklin Templeton.
Financial landscape of different tokenized government securities (by 21Shares)
Note that Ethena Labs also plans to use UStb as collateral on the main centralized exchange platforms with which it is already in partnership, such as Bybit and Bitget. These platforms, which already accept USDe as margin guarantee, could thus offer users 2 distinct options in terms of risk and return.
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UStb will exist as a completely independent product from the other stablecoin developed by Ethena, USDelaunched last February. USDe is distinguished by a different approach to UStb, using derivative-based hedging strategies rather than directly backing fiat or asset reserves.
The team has already announced that it will provide more details on the official launch date as well as new integrations with exchange platforms in the coming weeks.
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Sources: Dune, press release
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