Ethena Labs reveals USTB, a new stablecoin supported by Tokenized Fund from BlackRock
The developer of the distributed stablecoin technology, Ethena Labs, is getting ready to introduce USTB, a new stablecoin supported by BlackRock’s tokenized USD Institutional Digital Liquidity Fund (BUIDL). Offering a separate risk profile for customers and exchanges, UStb will operate as a unique product from Ethena’s current synthetic stablecoin, USDe.
Digital securities platform BlackRock and Securitize will team to create the USTb stablecoin, which debuted on September 26. Investing in US dollars, short-term US Treasury bills, and repurchase agreements helps the BUIDL fund—which supports UStb—keeps a constant value of $1 per token. Launched in March, BUIDL is the biggest tokenized U.S. Treasury fund having grown to control around $522 million in assets.
Ethena Labs underlined that USTB will be a stand-alone product, different from the current USD stablecoin. This lets users and partners select a stablecoin best for their particular requirements and risk tolerance. USDe has been strong in spite of current bad market conditions; it has not had one week of negative financing. Ethena Labs, however, sees UStb as a possible protection during times of limited funding, allowing for a more flexible change of the USDe backing mix.
Apart from helping USDe in demanding market conditions, Ethena Labs will also provide UStb as collateral on centralized exchanges. Ethena Labs intends to expand its collateral offers across additional exchanges shortly, while for now it works with platforms like Bybit and Bitget.
With a market capitalization of $2.6 billion, USDe has been somewhat important in the stablecoin scene since its introduction in February. Unlike conventional stablecoins backed straight by currency, USDe depends on assets like Bitcoin and Ethereum as collateral and employs a derivative hedging technique. Although creative, this strategy exposes several hazards including counterparty risk and volatility in collateral pricing.
Especially in times of financial crisis, Ethena’s new USD stablecoin seeks to improve the stability of the network and give customers a trustworthy substitute. Ethena Labs is establishing itself as a major actor in the future of distributed finance with continuous innovations and approaching exchange integrations.
