Ethena Labs Launches USDtb Stablecoin Backed by BlackRock’s BUIDL Fund

Ethena Labs has officially launched its new stablecoin, USDtb, with nearly 90% of its reserves backed by BlackRock’s BUIDL tokenized fund. This strategic move distinguishes USDtb from Ethena’s previous stablecoin, USDe, and strengthens its position in the market.

A New Stablecoin Backed by BlackRock

Ethena Labs introduced USDtb on December 16, marking a significant milestone as the first major stablecoin to utilize BlackRock’s BUIDL fund as its primary backing. Approximately 90% of USDtb’s reserves come from BUIDL, making it one of the most secure and cash-equivalent-backed stablecoins in the market.

The company clarified that USDtb is a “wholly independent product” separate from its first stablecoin, USDe. Unlike USDe, which relies on synthetic reserves, USDtb follows a more traditional stablecoin model similar to USDC and USDT, with reserves backed by cash and cash-equivalent assets.

“BlackRock’s BUIDL represents the vast majority of the USDtb backing, currently the highest BUIDL allocation of any stablecoin in the market,” Ethena Labs stated.

Boosting Market Sentiment and ENA Token Performance

The launch of USDtb has sparked significant enthusiasm in the crypto community. Investors have shown confidence in Ethena Labs’ innovative approach to stablecoin issuance, particularly with BlackRock’s involvement, which adds credibility and market stability.

The excitement surrounding USDtb’s release has also positively impacted the price of ENA, Ethena Labs’ native token. ENA surged to its highest value in nearly eight months following the stablecoin’s launch.

Market Implications

Ethena Labs’ decision to back USDtb with BlackRock’s BUIDL fund positions the stablecoin as a strong alternative in the market. It offers scalable, unrestricted transfers while maintaining a solid cash-equivalent reserve model.

This move not only diversifies Ethena Labs’ product offerings but also underscores growing institutional participation in the crypto sector, particularly in tokenized assets.

The launch of USDtb represents a significant step forward in bridging traditional finance with decentralized digital assets, fostering trust and stability in the broader stablecoin ecosystem.