Ethena labs have joined the race to launch stablecoins launching a new stablecoin backed by Blackrock.
The new stablecoin is USDtb and is backed by BlackRock’s USD Institutional Digital Liquidity Fund.
Ethena Labs announced the development via its official Twitter Page, revealing details of the launch and BlackRock’s’ involvement in it.
“Today we are launching our new stablecoin product, USDtb, backed by @BlackRock ‘s BUIDL Fund in partnership with @Securitize
USDtb functions like a traditional stablecoin such as USDC or USDT, utilizing cash and cash-equivalent reserve assets to back each token
Blackrock’s BUIDL represents the vast majority of the USDtb backing, currently the highest BUIDL allocation of any stablecoin in the market”
USDtb is a regular stablecoin like other popular coins. It operates similarly to other fiat-backed stablecoins like Tether and Circle’s USDC.
The USDtb stablecoin is being launched in partnership with Securitize, a leader in tokenization of real-world assets.
USDtb has more leverage over the traditional stablecoin option, with a completely separate risk profile compared to Ethena’s flagship token, USDe
The launch of the USDtb stablecoin is part of a broader strategy to improve the ethena ecosystem and make it more capable of cushioning volatile market conditions.
Ethena has partnered with Third-party custodians such as Copper, Zodia Custody, Komainu, and Coinbase Institutional to secure USDtb’s reserves, according to the company’s blog post.