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Ethena Labs launches new stablecoin backed by Blackrock

Ethena Labs launches new stablecoin backed by Blackrock

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” 
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.

While USDe generates yield by shorting assets like Bitcoin Ethereum, and Solana it is susceptible to underperformance during market downturns and negative funding rates.
To tackle this challenge, Ethena’s Risk Committee has approved USDtb as a backup asset for USDe, allowing the platform to reallocate reserves when necessary.
USDtb is also expected to serve as an alternative collateral option for margin trading on centralized exchanges, further broadening its utility.
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.


source: Nairametrics.com

Tags: Crypto

EntekHub.com

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