Ethena Labs Launches Multi-Chain Stablecoin with BlackRock Support

TLDR

• BlackRock’s BUIDL fund backs Ethena Labs’ new stablecoin USDtb, with 90% of reserves held in the fund to maintain a 1:1 USD peg
• USDtb operates across multiple blockchains including Ethereum, Solana, and Arbitrum using LayerZero technology for cross-chain transfers
• The stablecoin underwent security audits by Quantstamp, Cyfrin, and Pashov, with no major vulnerabilities found
• USDtb will serve as a stabilizing asset for Ethena’s existing USDe token during negative funding rates
• Ethena’s native token ENA has seen strong price performance, up 91.88% over the last 30 days

Ethena Labs has launched a new stablecoin called USDtb, backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL). The stablecoin maintains a one-to-one peg with the US dollar, with 90% of its reserves held in BlackRock’s BUIDL fund.

The launch marks a new development in the stablecoin market, as USDtb offers users a different risk profile compared to Ethena’s existing USDe token. While USDe focuses on synthetic dollar generation through decentralized finance systems, USDtb provides a more traditional backing structure.

LayerZero technology enables USDtb to operate across several blockchain networks, including Ethereum, Solana, Base, and Arbitrum. This cross-chain functionality allows users to transfer their assets seamlessly between different blockchain platforms.

Security has been a key focus for the USDtb launch. Multiple security firms, including Quantstamp, Cyfrin, and Pashov, have conducted thorough audits of the USDtb smart contracts. These reviews found no major vulnerabilities, confirming the technical strength of the implementation.

The stablecoin’s launch comes with practical applications already in place. USDtb will serve as a stabilizing asset for Ethena’s USDe token, particularly during periods of negative funding rates.

Ethena Labs has partnered with Securitize for the launch, adding an extra layer of institutional backing to the project. This collaboration helps ensure compliance and proper oversight of the stablecoin’s operations.

Today we are launching our new stablecoin product, USDtb, backed by @BlackRock's BUIDL Fund in partnership with @Securitize

Read below for full details👇 pic.twitter.com/mSf3mWv3oF

— Ethena Labs (@ethena_labs) December 16, 2024

The company is actively working to expand USDtb’s use cases. The stablecoin is currently under consideration as margin collateral on regulated exchanges and is participating in Spark’s $1 billion Tokenization Grand Prix.

Prior to the USDtb launch, Ethena Labs had already made moves to strengthen its position in the stablecoin market. The company integrated sUSDe into Aave, creating opportunities for stablecoin borrowing with potential APY rates up to 30%.

The development team has also proposed including Solana and staking derivatives as underlying assets for USDe, aiming to improve scalability and diversify collateral options.

Market response to Ethena’s developments has been positive. The company’s native token, ENA, has shown strong performance, trading at approximately $1.15 at the time of the announcement.

Recent price movements show ENA has gained 14.70% over the past week. The token’s monthly performance has been even more notable, with a 91.88% increase over the last 30 days.

BlackRock’s involvement through the BUIDL fund represents a connection between traditional finance and the crypto sector. The fund’s backing provides USDtb with institutional-grade security and liquidity support.

USDtb joins a growing market of stablecoins, each with different backing mechanisms and use cases. The stablecoin’s cross-chain functionality sets it apart from some competitors that operate on single blockchain networks.

The launch aligns with broader industry trends toward greater institutional involvement in crypto assets and the development of more secure, regulated stablecoin options.

The smart contract audits by multiple security firms demonstrate Ethena Labs’ commitment to technical security. This multi-layered approach to security validation helps build trust in the platform.