Ethena to invest $46m reserve fund in tokenized assets

Decentralized finance protocol Ethena will allocate $46 million of its Reserve Fund to various tokenized real-world assets.

Ethena (ENA) announced its decision on October 10, announcing that the fund includes BlackRock’s tokenized fund BlackRock USD Institutional Digital Liquidity, Mountain Protocol’s yield-generating stablecoin, Superstate Short-Term US Government Securities Fund, and Sky’s new stablecoin USDS. announced their allocations.

According to Ethena, the four assets were selected based on their potential in the real-world asset market. Selection criteria included product maturity, assets under management or total value locked, liquidity, payback period, legal design and risk-adjusted return.

Ethena’s Reserve Fund RWA allocations

The selection of BlackRock’s fund, Superstate’s sovereign debt fund, Mountain Protocol’s stablecoin and Sky’s stablecoin came after careful consideration by Ethena’s risk committee. The five-member group with voting rights includes people from Gauntlet, Block Analitica, Steakhouse, Llama Risk and Blockworks Advisory.

Ethena announced its real-world asset-backed reserve fund plans in July, and the offering attracted interest from 25 issuers from across the market. The committee selected these four from the pool of applicants.

In details shared in a blog post, Ethena outlined the following allocations: 40%, or about $18 million, to BlackRock’s fund; 29%, or roughly $13 million, to Sky’s stablecoin; 16.5% or $8 million to Mountain Protocol’s stablecoin; and 14.5%, or $7 million, will be transferred to Superstate’s tokenized U.S. government debt fund.

Once the committee completes allocations, it will be responsible for monitoring assets and providing regular updates.