Ethena Stablecoin UStb Launched With Fully Backed by BUIDL Fund

Key Points:

• Ethena stablecoin UStb was launched as an alternative to its existing USDe stablecoin.
• UStb will operate like traditional stablecoins, providing users and exchanges with a differentiated risk profile and stability.

Ethena Labs is readying the launch of a new stablecoin, UStb, together with the real-world asset tokenization platform Securitize.

Read more: Ethena USDe Custodian Certificate Shows Skyrocketing Asset Value

Ethena Stablecoin UStb Launched, Backed by BlackRock’s BUIDL Fund

Ethena stablecoin UStb will be fully collateralized by BlackRock’s tokenized BUIDL fund invested in U.S. dollars, short-term U.S. Treasury bills, and repurchase agreements. The BUIDL fund, which launched in March, has risen to be the largest tokenized U.S. Treasury fund with more than $522 million in assets under management.

USTb will behave no different from any other traditional stablecoin and will present an additional option over the existing USDe stablecoin of Ethena, which is fully collateralized and on-chain listed. The Ethena stablecoin will be complementary to USDe and give its users and exchange partners another option with a differentiated risk profile.

Ethena Continues DeFi Innovation with UStb, Increased Exchange Integration

Ethena stablecoin UStb will be collateralized by BlackRock and Securitize for stability and confidence. For this reason, UStb is an excellent alternative for those searching for an option within the stablecoins market on occasions when market conditions seem to present fluctuations.

Ethena is planning to list UStb on more centralized exchanges than it is currently listed on, like Bybit and Bitget, for example. That would give more freedom with the choice of collateral to the various exchanges and their users alike.

Ethena also discussed the road map for mitigating USDe’s performance in negative funding rate environments: If that went adverse for whatever reason, governance mechanisms could redeploy the backing assets from USDe to UStb in order to manage those risks and keep it adaptable and resilient. More updates are expected with respect to the launch timeline of UStb and integrations into exchanges.