⚡ Ethena Labs Introduces the UStb Stablecoin
posted 26 Sept 2024
Ethena Labs announced the launch of a new stablecoin, UStb, backed by BlackRock's tokenized Treasury fund, BUILD. This coin will operate independently from the existing USDe, which utilizes hedging strategies, including trades involving cryptocurrencies like BTC, ETH, and SOL, to offer users a yield.
To reduce the risk of USDe losing its peg, developers plan to shift a substantial portion of reserves into UStb during times of extreme market volatility or unfavorable trading conditions. Notably, during the previous major downturn in the crypto market, USDe only briefly lost its peg and quickly recovered.
BUILD, which will serve as the collateral for UStb, is the largest tokenized fund, boasting a capitalization of over $522 million and holding 27% of the total market. It invests in short-term U.S. Treasury bills, repurchase agreements (REPOs), and holds U.S. dollars.
Tokenized Funds Market Capitalization. Source: 21․co
The overall market for tokenized government securities is valued at over $2 billion, with a significant portion of these funds, including those from BlackRock and Hamilton Lane, supported by Securitize. With this robust backing, Ethena has proposed that several crypto exchanges adopt UStb as margin collateral.
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