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- Ethena Labs launches USDtb, a stablecoin backed by 90% of BlackRock’s BUIDL tokenized fund, ensuring stability and trust.
- USDtb offers a 1:1 cash-backed reserve model, competing with USDC and USDT for digital currency transactions.
- Ethena’s ENA token surges 117% after USDtb launch, reaching its highest price since April.
Ethena Labs has announced the official launch of the USDtb stablecoin backed by BlackRock’s BUIDL tokenized fund. This brings the stablecoin option to the market with a new player while there is a high demand for reliable and secure digital currencies.
USDtb is backed by reserves of cash or cash-equivalent assets in a 1:1 ratio for each issued token, which creates stability in the token’s value pegged to the US dollar. Nearly 90% of the reserves are tied to BlackRock’s BUIDL, setting USDtb apart from other stablecoins. This backing increases users’ credibility and stability and provides a new assurance of the stablecoin’s value.
Key Features of USDtb Stablecoin
USDtb functions like any other fiat-backed stablecoin, such as USDC and USDT. It employs cash reserves to preserve its worth. However, Ethena Labs attaches crucial importance to the tokenized fund that BlackRock launched to support USDtb, considering it is currently the most reliably backed stablecoin.
The new stablecoin also answers the growing need for assets linked to traditional finance and the digital market. It allows users to transfer USDtb without limitations, which will be convenient for some financial operations.
This is a general direction of Etena Labs’ development as a company that aims to add more products to its portfolio. Aside from USDtb, the company remains committed to its original stablecoin, USDe. Which shares the same name as the company but has a different risk profile and reserve collateral.
Market Reaction and ENA Token Surge
The recent announcement of the USDtb has triggered a positive response in Ethena’s native token, ENA. The highest price of the token was noted at $1.32 after the leak was made public in the market. Since then, it has been subjected to minor corrections and is currently at $1.20. Over the last month, there has been an increase in the demand for Ethena Labs products. This is indicated by an increase in the ENA token price, which has increased by almost 117% in the past month.
The investors have displayed confidence in Ethena Labs through funding. The latest one was a $500,000 funding from Donald Trump’s World Liberty Financial (WLFI). Such high levels of investment show that there is a possibility of expansion and profits within the firm especially with the new stable coin that it is offering.
Ethena Labs’ announcement of the new stablecoin also opens another avenue for linking within the ecosystem. USDtb will support USDe when the funding rate is negative to overcome various risks that affect another stablecoin the firm provides. This double approach keeps Ethena Labs safer and more diverse when dealing with digital assets.