New Ethena Stablecoin Finds Backing in BlackRock’s BUIDL Token

Ethena Launches USDtb Stablecoin to Fortify DeFi Stability in Bear Markets

Ethena, a leading decentralized finance (DeFi) platform, unveiled USDtb, a new stablecoin designed to bolster the stability of its USDe token during volatile or bearish market conditions.

USDtb is pegged to the U.S. dollar and backed by reserves primarily composed of BUIDL, a tokenized money market fund developed by BlackRock in collaboration with Securitize. Ethena says the new stablecoin offers a safe haven for users seeking risk-averse options within its ecosystem.

“With the increasing demand for diverse stablecoin solutions, USDtb provides an innovative product to enhance the reliability of our platform, offering users a different risk profile without requiring them to exit the Ethena environment,” said Guy Young, founder of Ethena.

A Safety Net for USDe During Bearish Trends

Ethena’s USDe token, which acts as a “synthetic dollar,” has been one of the protocol’s flagship offerings, maintaining its $1 peg while generating yields by leveraging derivatives strategies. However, the profitability of these strategies diminishes in bearish markets, leading to potential instability.

The introduction of USDtb allows Ethena to close the derivatives positions underlying USDe during negative funding periods, redirecting funds into the new stablecoin to mitigate risks and ensure a steady value. The protocol also plans to seek recognition of USDtb as acceptable collateral for centralized margin trading.

Strong Partnerships and Expansion Goals

Ethena has secured partnerships with industry leaders, including custodians like Copper, Zodia Custody, Coinbase Institutional, and Komainu, to manage USDtb reserves. Market liquidity for the stablecoin will be supported by firms such as Jump Trading, GSR Markets, Amber Group, Cumberland, and SCB Limited.

The company has also applied for Sky’s (formerly MakerDAO) Tokenization Grand Prix program, which aims to allocate $1 billion toward advancing tokenized real-world assets.

ENA Token Surge After Strategic Investment

Ethena’s governance token, ENA, saw a weekend rally after blockchain data revealed a $500,000 purchase by World Liberty Financial, a DeFi project linked to President-elect Donald Trump. The investment pushed ENA’s price up by 25% before it stabilized on Monday.

Ethena’s DeFi Vision Expands

Ethena’s rollout of USDtb and the surge in ENA reflect the protocol’s ambition to cement its position as a pioneer in DeFi innovation. With $6 billion in user funds already locked on the platform and new stablecoin offerings on the horizon, Ethena is set to play a vital role in shaping the next chapter of decentralized finance.