Ethena, a prominent synthetic dollar blockchain project, has launched a new stablecoin, USDtb, marking a significant shift in its strategy. The stablecoin, which is backed by BlackRock’s BUIDL fund, aims to provide a more secure and traditional peg to the U.S. dollar compared to Ethena’s experimental USDe token. This move reflects Ethena’s effort to diversify its offerings and meet growing demand for stablecoin solutions with different risk profiles.
USDtb is designed to operate much like traditional stablecoins such as USDC and USDT, with a one-to-one peg to the U.S. dollar. Unlike Ethena’s previous token, USDe, which utilizes a derivative-based strategy to maintain its dollar peg, USDtb will be backed by reserve assets equivalent to the value of every token issued. This reserve structure ensures that each USDtb token is fully backed by assets, offering a more stable and predictable option for users.
BlackRock’s BUIDL fund plays a pivotal role in USDtb’s launch, accounting for over 90% of its reserves. BUIDL, a tokenized fund primarily investing in U.S. Treasury bills and other short-term government debt, ensures a highly secure backing for USDtb. This substantial backing marks the largest allocation of BlackRock’s BUIDL fund to any stablecoin issuer, highlighting the project’s commitment to financial stability and transparency.
Ethena’s USDe token, on the other hand, employs a more experimental “delta-neutral” strategy, using a combination of assets like BTC, ETH, and SOL, along with stablecoins, to maintain its dollar peg. This strategy, while innovative, exposes USDe to market volatility. In contrast, USDtb provides a safer alternative, with its traditional reserve backing reducing exposure to market fluctuations.
The introduction of USDtb is seen as a strategic move to offer users a stable and reliable alternative without leaving the Ethena ecosystem. With increasing demand for different stablecoin options, USDtb aims to address the need for lower-risk, regulated stablecoins, offering an innovative solution for both institutional and retail users.
USDtb is designed to be minted only by whitelisted users who pass anti-money laundering checks, ensuring compliance with global regulations. It will be managed by Pallas, a BVI-based company, while Ethena Labs and its subsidiaries provide investment management and custody services.
As part of its broader strategy, Ethena has also submitted USDtb for Spark’s Tokenization Grand Prix, a competition that could further enhance its liquidity and use within the broader blockchain ecosystem. If successful, this could solidify USDtb’s role as a major player in the stablecoin market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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