Ethena Labs debuts USDtb backed by BlackRock’s BUIDL

Ethena will use USDtb as a backing asset for USDe, with 90% of reserves in BlackRock’s BUIDL fund, as its protocol token rallies over 25% this weekend.

Photo: Ethena Labs

Key Takeaways

• Ethena Labs launches USDtb, a stablecoin backed by BlackRock's BUIDL, maintaining 90% reserves in BUIDL.
• USDtb operates independently from USDe and is available on Ethereum mainnet, Base, Solana, and Arbitrum through LayerZero integration.

Ethena Labs has launched USDtb, a new stablecoin backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL).

The stablecoin maintains a peg to the US dollar, holding 90% of its reserves in BUIDL issued by BlackRock. It was developed in partnership with Securitize, a leader in real-world asset tokenization.

“In light of the rapidly accelerating demand for different stablecoin options, we saw a clear opportunity to provide a new product that offers users an entirely different risk profile from USDe without them having to leave our trusted ecosystem,” said Ethena founder Guy Young.

The new stablecoin operates independently from Ethena’s flagship USDe token and can be used like any other stablecoin, allowing seamless and unrestricted transfers.

USDtb will be available on multiple networks including Ethereum mainnet, Base, Solana, and Arbitrum through LayerZero integration.

Ethena has been one of the fastest-growing DeFi protocols, attracting nearly $6 billion in user funds since early 2024.

The introduction of USDtb is a strategic move by Ethena to further stabilize USDe, particularly during bearish market conditions, according to the company’s press release.

USDe is Ethena’s flagship stablecoin, offering a steady $1 peg while providing users with an attractive 27% annualized yield under current conditions.

Ethena’s Risk Committee has approved USDtb as a USDe backing asset, enabling the protocol to reallocate reserves to USDtb during periods of negative funding rates.

Beyond its operational goals, Ethena’s governance token, ENA, has gained significant attention recently.

Over the weekend, President-elect Donald Trump’s World Liberty Financial purchased $500,000 worth of the token, sparking a 25% rally before ENA’s price eventually stabilized.

At press time, ENA is trading at $1.21 with a market cap of $3.5 billion.