Ethena Labs Debuts USDtb Stablecoin Backed by BlackRock's USD Institutional Digital Liquidity Fund

USDtb operates similarly to other popular fiat-backed stablecoins like USD Coin (USDC) and Tether (USDT), with reserves held in cash or cash-equivalent assets at a 1:1 ratio.

Cryptocurrency firm Ethena Labs has launched a new stablecoin, USDtb, backed by BlackRock’s USD Institutional Digital Liquidity Fund.

The stablecoin is designed to be pegged 1:1 to the U.S. dollar, with reserves fully backed by cash or cash-equivalent assets. Specifically, 90% of USDtb's reserves will be allocated to the BUIDL fund, which tokenizes the iShares Core Total U.S. Bond Market ETF (在场交易基金). The fund primarily invests in short-term U.S. Treasury bills, cash, and repurchase agreements.

According to Ethena, this marks the highest BUIDL allocation among stablecoins, enabling greater scalability and a high degree of stability. The stablecoin is being launched in partnership with Securitize, a leading platform for tokenizing real-world assets.

USDtb is positioned as a more traditional stablecoin option, distinct from Ethena’s flagship token, USDe, which utilizes a derivative-based strategy to maintain its peg to the U.S. dollar.

Ethena's Ecosystem

The introduction of USDtb aligns with Ethena’s strategy to enhance the resilience of its ecosystem, especially in volatile market conditions. While USDe generates yield by shorting assets like Bitcoin, Ether, and Solana, it is susceptible to underperformance during market downturns and negative funding rates.

To mitigate these risks, Ethena's Risk Committee has approved USDtb as a backup asset for USDe, enabling the platform to adjust reserves as needed. Additionally, USDtb is expected to serve as an alternative collateral option for margin trading on centralized exchanges, expanding its use cases.

According to the company, USDtb's reserves are secured by Copper, Zodia Custody, Komainu, and Coinbase Institutional. Ethena has also submitted an application for USDtb to be included in Sky's $1 billion Tokenization Grand Prix, which aims to fund tokenized real-world asset projects.

The launch of USDtb follows several successful audits by leading firms, including Pashov, Quantstamp, and Cyfrin, attesting to the token's safety and reliability.