TL;DR
- Ethena has launched its new stablecoin UStb, designed as an alternative to USDe, offering stability with a differentiated risk profile in a volatile market.
- UStb will be fully backed by BlackRock’s tokenized BUIDL fund, which manages over $522 million in assets, ensuring its collateralization.
- There are plans to list UStb on more centralized exchanges, such as Bybit and Bitget.
Ethena has launched its new stablecoin UStb as an alternative to its existing USDe. This new digital asset was designed to provide users and platforms with stability similar to traditional assets like USDT, but with a differentiated risk profile that may be appealing in a volatile market.
The stablecoin UStb will be completely backed by BlackRock’s tokenized BUIDL fund, which invests in U.S. dollars, short-term Treasury bonds, and repurchase agreements, thus ensuring its full collateralization.
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
The BUIDL fund, which started operating in March, has established itself as the largest tokenized U.S. Treasury fund, managing assets that exceed $522 million. This solid backing provides UStb with a level of confidence that could attract investors and users looking for a secure and stable option amid volatility.
Ethena’s new proposal was designed both to complement the stablecoin USDe, which is also fully collateralized, and to offer an additional option that better meets the needs of users and exchanges during market fluctuations. With expectations of sustained growth, Ethena plans to list UStb on an increasing number of centralized exchanges, such as Bybit and Bitget, which will facilitate its accessibility for a wide range of users.
Ethena Designs a Plan to Deal with Financial Complications
Furthermore, Ethena has outlined a plan to address potential challenges in the performance of USDe in situations of negative funding rates. Should difficulties arise, there is a possibility of redistributing the backing assets from USDe to UStb, which could help maintain the stability of both products and ensure they remain viable in the market.
Ethena continues to innovate, providing users with options that promote both stability and adaptability in a complex and volatile financial environment. Additional updates regarding the launch and integration of UStb on various platforms are expected in the near future.