Ethena Labs launches stablecoin backed by BlackRock’s tokenized fund shares

Ethena Labs announced the launch of its USDtb stablecoin, which volition leverage  BlackRock’s tokenized fund, USD Institutional Digital Liquidity Fund (BUIDL), for 90% of its backing.

According to the Dec. 16 announcement, the concern was facilitated by Securitize.

USDtb volition run independently from Ethena’s existing algorithmic stablecoin, USDe, providing users and speech partners with a stablecoin featuring a differentiated hazard profile. Ethena’s Risk Committee has besides approved USDtb arsenic a imaginable backing plus for USDe, enhancing its quality to navigate volatile marketplace conditions.  

USDtb plan provides flexibility and hazard mitigation crossed Ethena’s ecosystem and beyond, arsenic Spark’s $1 cardinal Tokenization Grand Prix touts directing incentives towards the stablecoin. The inaugural volition boost tokenization efforts.

Additionally, USDtb is inherently multichain, built arsenic LayerZero’s Omnichain Fungible Token (OFT). Users tin transportation USDtb crossed assorted blockchains, specified arsenic Ethereum, Base, Solana, and Arbitrum. 

USDtb’s liquidity volition beryllium supported by salient marketplace makers, including Jump, Cumberland, Wintermute, Amber, GSR, and SCB Limited.

Notably, Ethena Labs’s determination represents a important measurement guardant for stablecoins, which harvester the stableness of accepted concern with the ratio and scalability of blockchain. BlackRock’s BUIDL presently has a marketplace headdress of astir $562 million.

Furthermore, it solidifies Ethena’s presumption successful the stablecoin marketplace pursuing the occurrence of its algorithmic stablecoin USDe, which grew 93% implicit the past 30 days to deed a $5.6 cardinal marketplace headdress — making it the third-largest stablecoin successful the market.

The maturation could beryllium intimately tied to its worth accrual mechanism, which is giving USDe stakers a 27% yearly percent output (APY) arsenic of property time.

TradFi meets DeFi

In summation to Ethena Labs, different DeFi protocols are besides considering tapping into BUIDL. 

Money marketplace level Aave proposed a caller GHO Stability Module (GSM) connected Aug. 26 based connected BlackRock’s tokenized fund. Aave created the GSM to assistance support the peg of its ecosystem’s stablecoin, GHO.

Meanwhile, BlackRock plans to expand its BUIDL offering for accepted concern giants. The plus manager is considering utilizing the shares of its tokenized money arsenic collateral for derivatives trading.

Such a determination would connect the trillion-dollar derivatives marketplace to the nascent tokenized wealth funds sector, which is astir $3 cardinal successful size arsenic of Dec. 16.

The station Ethena Labs launches stablecoin backed by BlackRock’s tokenized money shares appeared archetypal connected CryptoSlate.