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Ethena to launch new stablecoin backed by BlackRock’s BUIDL

2 weeks ago

Ethena Labs, developer of nan decentralized stablecoin protocol Ethena, is moving connected a caller stablecoin backed by a tokenized money from BlackRock.

Ethena Labs took to X connected Sept. 26 to denote its caller stablecoin project, UStb (USTB), which will beryllium built successful business pinch awesome Bitcoin investor (BTC) BlackRock and nan integer securities level Securitize.

The stablecoin will beryllium backed by BlackRock’s tokenized BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which offers a unchangeable worth of $1 per token.

The upcoming UStb stablecoin will beryllium a abstracted fiat stablecoin merchandise alongside USDe (USDE), a synthetic dollar stablecoin issued by Ethena successful February.

“This will beryllium arsenic an isolated merchandise abstracted from USDe offering users and speech partners a caller merchandise pinch a differentiated consequence floor plan to USDe,” Ethena Labs said.

USDe tin use from UStb during periods of anemic backing conditions

In nan announcement, Ethena Labs mentioned that nan organization has been progressively concerned astir nan USDe consequence to antagonistic backing complaint environments.

“Despite bearish conditions complete nan past six months, Ethena’s USDe has not endured a azygous week of antagonistic funding,” Ethena Labs noted. According to nan developer, nan summation of UStb could thief resoluteness this rumor of USDe. Ethena Labs wrote:

“Nevertheless, if required USDe backing creation tin dynamically set betwixt ground positions and liquid unchangeable products successful different liking complaint environments and USDe tin use from incorporating UStb during periods of anemic backing conditions.”

The station added that Ethena could perchance adjacent hedging positions and re-allocate backing assets to UStb if governance deems it basal and due successful antagonistic backing conditions. Ethena Labs added that specified a move is expected to further facilitate consequence associated pinch antagonistic backing complaint environments.

Ethena to merge collateral offerings beyond Bybit and Bitget

Additionally, Ethena Labs mentioned its description into collateral offerings connected centralized exchanges beyond existing integrations pinch exchanges for illustration Bybit and Bitget.

“It tin connection speech partners nan prime of 2 chopped products for separator collateral,” nan station said.

Ethena Labs promised to supply an update connected caller speech integrations arsenic good arsenic UStb timelines shortly.

Related: Goldman Sachs-backed BitGo introduces USDS rewarding stablecoin

Cointelegraph approached Ethena Labs for a remark regarding nan UStb motorboat but did not person a consequence astatine nan clip of publication. This article will beryllium updated pending caller information.

Since launching past year, Ethena’s USDE has established itself arsenic a awesome emerging stablecoin, pinch its marketplace worth surging past $2 cardinal successful April, according to CoinGecko data.

USDE’s marketplace capitalization is comparable pinch that of First Digital (FDUSD), a stablecoin issued by FD121, a subsidiary of Hong Kong-headquartered financial patient First Digital.

At nan clip of writing, USDE’s marketplace headdress amounts to $2.6 billion, somewhat little than FDUSD’s $2.9 billion.