Ethena Launches New UStb Stablecoin Backed by BlackRock’s Tokenized Fund
Ethena will release $UStb, a stablecoin backed by BlackRock’s tokenized U.S. Treasuries fund, BUIDL. It offers a safer alternative to its current $USDe.
Key points:
- Introducing $UStb: Ethena plans to launch $UStb, partnering with Securitize.
- Backed by BlackRock’s BUIDL fund: $UStb ties directly to tokenized U.S. Treasuries.
- Separate from $USDe: $UStb provides a different risk profile from $USDe.
- $USDe’s growth: Ethena’s $USDe has grown to $2.6 billion in supply.
- Mitigating risk: $UStb addresses $USDe’s risks during volatile markets.
Ethena’s New Stablecoin, UStb, Backed by BlackRock:
Ethena, with help from Securitize, plans to launch $UStb.
Unlike $USDe, $UStb will use BlackRock’s tokenized BUIDL fund for backing. This fund focuses on short-term U.S. Treasury bills, offering more stability.
In contrast, $USDe relies on volatile crypto assets and derivative strategies, which present higher risks.
$USDe, Ethena’s synthetic dollar, has seen rapid growth. It holds a supply of $2.6 billion, making it the fifth-largest stablecoin.
Yet, its complex hedging and reliance on volatile crypto assets led to challenges, including a brief dip in its dollar peg. $UStb provides a safer alternative, helping reduce these risks.
Read more: Ethena Domain Registrar Hacked, Users Warned to Stay Away
BlackRock’s BUIDL fund manages over $522M in assets, making it a strong foundation for $UStb.
Ethena also plans to use $UStb as collateral on exchanges like Bybit and Bitget.
With this move, Ethena aims to strengthen its role in the DeFi market and offer more stable digital assets.
