TL;DR
- Ethena Labs launched its BlackRock-backed stablecoin, USDtb, on December 16, 2024, amassing $65.4 million in TVL within the first 24 hours.
- USDtb is designed as a stablecoin with a 1:1 reserve ratio, backed by BlackRock’s USD Institutional Digital Liquidity Fund, providing stability and liquidity.
- The launch has received praise from blockchain experts, with predictions of USDtb becoming a leading tokenized treasury product and potentially growing to $100 billion.
Ethena Labs has made a significant impact in the decentralized finance (DeFi) sector with the launch of its BlackRock-backed stablecoin, USDtb. Officially launched on December 16, 2024, USDtb has already amassed an impressive $70.4 million in TVL within its first 24 hours. This milestone highlights the growing interest and confidence in Ethena Labs’ innovative financial products.
Features and Benefits of USDtb
USDtb is crafted to function as a stablecoin backed by cash or cash equivalents, maintaining a 1:1 reserve ratio. This design ensures it provides stability and liquidity comparable to well-known rivals such as Tether (USDT) and USD Coin (USDC).
The assets supporting the stablecoin are mainly invested in BlackRock’s USD Institutional Digital Liquidity Fund, in collaboration with Securitize, a leader in blockchain tokenization. This arrangement provides a strong foundation of security and trust for holders of USDtb.
Ethena Labs launched USDtb as a tactical resource designed to assist users of its premier synthetic dollar offering, USDe, in managing challenging bearish market conditions.
By reallocating the backing assets to USDtb, Ethena aims to reduce risks associated with USDe during challenging market conditions. This move is expected to enhance the overall stability and attractiveness of Ethena’s financial ecosystem.
Market Reception and Predictions
The introduction of USDtb has garnered acclaim from prominent figures in the blockchain community. José Maria Macedo, co-founder of Delphi Labs, anticipates that USDtb will emerge as the leading tokenized treasury product within just a month.
Seraphim Czecker, Ethena’s head of growth, emphasized the product’s scalability potential, suggesting USDtb could grow to $100 billion. Czecker highlighted Ethena’s ability to allocate capital efficiently, even in bearish conditions, enabling the stablecoin to offer yield stability through an “APY floor” aligned with US Treasury Bill rates.
Security and Compliance
Ethena Labs has taken meticulous steps to ensure the security of USDtb. The main smart contracts were audited three times by top security companies—Pashov, Quantstamp, and Cyfrin—in October, and no serious vulnerabilities were found. Ethena’s Risk Committee approved USDtb in September, allowing for its official launch, with final changes made earlier this month.
