Ethena Invests $46 Million in Tokenized RWA Products from BlackRock and Others
Ethena, a decentralized finance protocol, announces a significant allocation of its reserve fund to real-world asset-backed products as part of a growing investment trend.
Decentralized finance (DeFi) protocol Ethena has announced its intention to allocate $46 million from its reserve fund to a range of tokenized products, including investments in BlackRock's and Securitize's funds. This decision aligns with the increasing trend among DeFi platforms to invest in real-world asset (RWA) backed products for stable yields without departing from blockchain ecosystems.
The investments will be distributed as follows:
- $18 million in BUIDL
- $13 million in USDS
- $8 million in USDM
- $7 million in USTB
This strategy will help Ethena generate yield by maintaining a balance in spot bitcoin (BTC) and ether (ETH) and managing derivative positions. Furthermore, this approach is indicative of a shift within the DeFi sector towards using traditional assets to mitigate risks associated with crypto volatility, reflecting a significant evolution in investment strategies aimed at achieving stable returns.
