Ethena launches new stablecoin product USDtb, reserves funds invested in BlackRock’s BUIDL

PANews reported on December 16 that according to the official blog, stablecoin issuer Ethena announced that it has cooperated with Securitize, a real-world asset tokenization company, to publicly launch a new stablecoin product called USDtb. USDtb’s reserve funds are invested in BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL).

USDtb has similar characteristics to existing fiat stablecoins such as USDC or USDT, using reserves of cash or cash equivalents to back each token at a 1:1 ratio. Users can transfer USDtb freely and without restrictions. Thanks to the use of BlackRock’s BUIDL as the primary reserve asset, USDtb is able to scale with no real limitations and accounts for the vast majority (90%) of total reserves, the highest BUIDL allocation of any stablecoin.

USDtb is a completely independent product from USDe, providing users and exchange partners with a new stablecoin option with completely different risk characteristics compared to USDe. USDtb can also help USDe better cope with difficult market conditions. Ethena’s risk committee approved a proposal last week to make USDtb the backing asset of USDe. During periods of negative funding rates, Ethena will be able to close USDe’s underlying hedging positions and reallocate its backing assets to USDtb to further mitigate associated risks.