Key Points:

• The $6 billion DeFi protocol Ethena has launched a new stablecoin named USDtb, which is supported by BlackRock and Securitize's tokenized money market fund, BUIDL.
• This offering aims to stabilize the protocol's yield-generating USDe token and reduce risks in bear markets.
• Ethena aims for USDtb to be accepted as collateral on centralized exchanges and has applied for inclusion in Sky's $1 billion tokenized asset investment initiative.

Insights on Ethena

The rapidly growing decentralized finance project Ethena announced on Monday that it is rolling out a new stablecoin intended to stabilize the USDe token when the crypto market faces downturns. The USDtb token is designed to maintain a price of $1, holding 90% of its reserves in BUIDL, the tokenized money market fund issued by the major asset manager, BlackRock, in collaboration with Securitize.

"Given the rising demand for various stablecoin alternatives, we recognized a potential to offer a product that provides a different risk profile than USDe without requiring departure from our established ecosystem," stated Guy Young, founder of Ethena.

Ethena has become one of the most promising DeFi platforms, securing nearly $6 billion in user funds since launching publicly in early 2024. Its flagship token, USDe, which is branded as a synthetic dollar with a stable price of $1, yields returns for investors through strategic shorts on Bitcoin, Ethereum, and Solana along with funding rate farming. This approach provides substantial yields—currently at 27% annually—during bullish market conditions but can lead to losses when conditions worsen.

Future Aspirations

Aim to have USDtb adopted as collateral for margin trading on centralized exchanges in the future. Ethena has enlisted several custodians for the new stablecoin, including Copper, Zodia Custody, Komainu, and Coinbase Institutional. The liquidity providers include Jump, Cumberland, Amber Group, GSR Markets, and SCB Limited.

The protocol's governance token has recently attracted attention from Donald Trump's associated World Liberty Financial, which bought around $500,000 worth of tokens, resulting in a 25% spike in the value of ENA over the weekend.