Ethena Announces UStb Stablecoin Backed by BlackRock’s BUIDL

Ethena has announced that it has developed a new stablecoin called UStb, where reserves will be held in BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL).

In the blog post, the team explained that UStb will be a “completely independent product” with a different risk profile compared to the company’s other stablecoin, USDe.

It was also stated that UStb will help USDe manage risk during difficult market conditions by allowing Ethena’s management to reallocate support assets to UStb when necessary.

However, market stakeholders have approached USDe with concern as the volatility in crypto markets could cause it to unwind quickly.

The team also addressed some of these concerns, emphasizing that USDe has remained stable despite recent bearish conditions. It also noted that the token can dynamically adjust its support between underlying positions and liquid stablecoins, and include UStb during periods of weak funding rates if necessary.

Ethena said in the post that UStb will be listed on centralized exchanges like Bybit, Bitget, and all exchanges that Efena is a partner of, where USDe is currently used as margin collateral.

Details will be announced in the coming weeks.