Highlights:
- Ethena Labs launches UStb, a stablecoin backed by BlackRock’s BUIDL, ensuring stability and a differentiated risk profile.
- UStb offers safer stability by investing in liquid assets like U.S. Treasuries, unlike Ethena’s crypto-backed USDe.
- UStb will be integrated into centralized exchanges as margin collateral, supporting Ethena’s growing stablecoin ecosystem.
Ethena Labs has announced the launch of UStb, a new stablecoin fully backed by BlackRock’s tokenized fund, BUIDL, in collaboration with Securitize. This new stablecoin is designed to offer users and exchange partners an alternative with a differentiated risk profile compared to Ethena’s existing synthetic stablecoin, USDe.
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The upcoming UStb stablecoin will be fully collateralized by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). This fund holds U.S. dollars, short-term U.S. Treasury bills, and repurchase agreements, which ensure the stability of the UStb. Since its launch in March, BUIDL has accumulated more than $500 million in assets, establishing itself as the largest tokenized U.S. Treasury fund on the Ethereum blockchain.
We are excited to announce Ethena's newest product offering: UStb
UStb will be fully backed by @Blackrock BUIDL in partnership with @Securitize, enabling a separate fiat stablecoin product alongside USDe
Details below on why this is important: pic.twitter.com/jOIoMef7W3
— Ethena Labs (@ethena_labs) September 26, 2024
A Distinct Alternative to USDe
Ethena’s existing stablecoin, USDe, has grown in popularity and now holds a $2.5 billion market cap, making it the fifth-largest stablecoin. However, it relies on derivative strategies, making it more susceptible to market volatility compared to traditional stablecoins. USDe has experienced concerns regarding its ability to maintain stability during market downturns, particularly in negative funding rate environments.
By introducing UStb, Ethena Labs offers a solution to some of these concerns. UStb can act as an alternative during periods of weak market conditions. Ethena’s governance can adjust USDe’s backing composition by reallocating assets to UStb if necessary. This flexibility ensures a more stable performance during market volatility.
UStb to Be Listed on Centralized Exchanges
Ethena has confirmed that UStb will be listed on exchanges such as Bybit and Bitget, which already support USDe as margin collateral. The addition of UStb offers exchange partners the choice of two distinct stablecoins with different risk profiles for margin collateral.
Ethena’s expansion into the stablecoin market signals its ongoing commitment to providing diverse and reliable digital assets. UStb offers a safer investment option compared to USDe, due to its direct backing by real-world assets through BlackRock’s BUIDL.
Further Enhancing Stability
Ethena Labs stated that the introduction of UStb marks a significant step toward enhancing the stability of its overall ecosystem. USDe will continue to operate independently, but the integration of UStb allows Ethena to mitigate risks associated with negative funding conditions.
The decision to launch UStb reflects the growing demand for stablecoins backed by real-world assets, such as U.S. Treasuries. Ethena’s collaboration with BlackRock and Securitize positions the company as a leading player in the rapidly evolving tokenized asset market. Moreover, Ethena Labs plans to share additional information regarding the timeline for UStb’s launch and its integration into more exchanges in the coming weeks.
On September 18, Ethena Labs suspended its website after a security breach. The breach impacted its domain registrar, compromising the front-end UI. Despite the breach, user funds remained secure. Ethena Labs warned users to avoid fraudulent websites and apps posing as the official platform to prevent losses from scams.
Moreover, Ethena Labs introduced sENA, a liquid receipt token for locked ENA. This token provides liquidity while staked ENA remains active across DeFi platforms. Users can access liquidity without unstaking, boosting utility and participation. sENA supports Pendle, money markets, and staking protocols. It offers flexibility, rewards, and up to 40x liquidity benefits in DeFi markets.
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