Ethena Labs and Securitize Introduce USDtb Stablecoin Backed by BlackRock
Ethena Labs, an Ethereum-based decentralized protocol, has introduced a new stablecoin, USDtb, in partnership with Securitize. This stablecoin is backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), marking a significant innovation in the stablecoin market.
What Makes USDtb Different?
USDtb operates similarly to established stablecoins like Circle’s USDC and Tether’s USDT, being backed 1:1 by cash or similar assets. However, its unique reserve structure relies predominantly on BlackRock’s BUIDL fund for 90% of its backing. This structure enables USDtb to grow rapidly without the restrictions faced by other stablecoins, positioning it as one of the safest and most scalable options available. Its backing surpasses that of any existing stablecoin, presenting a distinct risk profile compared to USDe, thus providing users with greater flexibility and reliability in managing their stablecoins.
Additionally, USDtb contributes to the stability of USDe, especially during market downturns. Ethena’s Risk Committee has approved the use of USDtb to support USDe when funding rates are negative, allowing for the transfer of backing assets to USDtb to enhance stability and mitigate risks associated with USDe.
Ethena Labs to Expand USDtb Potential in the Digital Economy
Beyond its role as a stablecoin, Ethena plans to utilize USDtb as collateral on centralized exchanges. This strategy aims to provide traders with a secure and scalable asset diversification option. The initiative may gain traction as more exchanges implement similar programs. Furthermore, Ethena is exploring the potential of USDtb in Spark’s $1 billion Tokenization Grand Prix.
Security remains paramount for Ethena; USDtb’s smart contracts have undergone extensive testing and passed full audits from reputable firms including Pashov, Quantstamp, and Cyfrin, all yielding no high or medium-level findings. A community audit conducted by Code4rena further validated the security and reliability of USDtb for users.
This approach aligns with Ethena Labs' broader objective to enhance the stability and scalability of its Decentralized Finance (DeFi) ecosystem. By leveraging USDtb to support USDe and other stablecoin operations, Ethena is building a more resilient platform capable of enduring market fluctuations.
Recently, Ethena partnered with Derive.xyz, an on-chain derivatives platform, to enhance liquidity across both protocols, aiming to foster growth by offering users efficient and stable trading options.