Ethena launches new Stable Coin product USDtb, with reserve funds invested in BlackRock's BUIDL

PANews 16th December news, according to the official blog, Stable Coinissuance merchant Ethena announced its collaboration with real-world asset tokenization company Securitize to launch a new Stable Coin product named USDtb. The reserve funds of USDtb are invested in BlackRock’s Institutional Digital Liquidity Fund (BUIDL). USDtb has similar characteristics to existing fiat Stable Coins (such as USDC or USDT), that is, it is backed by cash or cash equivalents on a 1:1 basis to support each token. Users can freely and unrestrictedly transfer USDtb. Due to the use of BlackRock’s BUIDL as the primary reserve asset, USDtb can be expanded without actual restrictions, accounting for the vast majority (90%) of the total reserves, which is the highest BUIDL allocation among all Stable Coins. USDtb is a completely independent product outside of USDe, providing users and exchange partners with a new choice of Stable Coin. Compared to USDe, its risk characteristics are completely different. USDtb can also help USDe better deal with challenging market conditions. The Risk Committee of Ethena approved a proposal last week to use USDtb as the backing asset for USDe. During periods of negative interest rates, Ethena will be able to close the underlying hedging position of USDe and reallocate its backing assets to USDtb to further mitigate related risks.