USDtb Stablecoin: Ethena’s Stablecoin Backed by U.S. Treasury Bills
USDtb Stablecoin– Ethena, a blockchain project specializing in synthetic dollars, has announced the launch of a new stablecoin called USDtb. This token will be backed by BlackRock’s BUIDL fund, which manages a significant portfolio of U.S. Treasury bills worth over half a billion dollars. The new stablecoin marks a major shift for Ethena, which previously operated with its USDe token, pegged to the U.S. dollar via a derivative-based strategy.
According to Ethena, USDtb offers a more traditional risk profile compared to USDe, with a direct dollar peg backed by reserve assets equal to the USD value of every USDtb issued. This makes USDtb more similar to well-known stablecoins like USDC and USDT, which maintain a 1:1 dollar backing.
Backing by BlackRock’s BUIDL Fund
USDtb will rely on BlackRock’s BUIDL fund, which will account for over 90% of the stablecoin’s reserves. BUIDL is a tokenized fund that primarily invests in short-term U.S. government debt and other cash-like assets, and it is the largest such tokenized fund in existence. Ethena aims to use BUIDL to ensure USDtb’s independence and minimize the risks associated with its USDe token, which operates based on market conditions.
Zack Rosenberg, General Counsel at Ethena Labs, explained the strategy behind USDtb’s introduction:
USDtb will act as a safe haven during moments when our cash-and-carry trade in USDe breaks down, particularly when funding rates go negative.
The move to implement USDtb also reflects Ethena’s goal to offer a new product with a different risk profile, providing more options for users without them having to leave the Ethena ecosystem.
USDe vs. USDtb: Key Differences in Strategy and Risk
USDe, Ethena’s previous synthetic dollar token, uses a delta-neutral strategy to maintain its 1:1 peg to the dollar. This strategy capitalizes on the price differences between spot and futures markets, specifically using assets like stETH and ETH futures. USDe is also backed by a mix of free-floating assets such as BTC, ETH, SOL, and other stablecoins like USDC and USDT.
However, USDtb will be fully backed by reserves held in BUIDL, a more stable and less volatile option. According to Ethena’s statement, USDtb is designed to reduce the risks associated with USDe when market conditions become unpredictable.
In fact, USDtb’s role extends beyond being a simple stablecoin. It will serve as a reserve asset for USDe, especially during periods of market stress when USDe’s hedging strategy might break down.
USDtb’s Institutional Support and Launch Details
Ethena is launching USDtb in partnership with Securitize, the issuer of the BlackRock USD Institutional Digital Liquidity Fund. The stablecoin will be available for minting exclusively by whitelisted users, who must pass AML checks and other screenings.
USDtb will be custodied by established institutions like Copper, Zodia Custody, Komainu, and Coinbase Institutional. Additionally, Ethena Labs has completed three full security reviews with auditors, including Pashov, Quantstamp, and Cyfrin, with no significant findings.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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