Ethena Launches USDtb Stablecoin Backed By BlackRock’s BUIDL

Decentralized finance (DeFi) protocol Ethena Labs has unveiled its new stablecoin, USDtb, designed to address risk and stability concerns within its ecosystem.

Backed primarily by BlackRock’s tokenized money market fund BUIDL, developed in partnership with Securitize, USDtb aims to serve as a resilient asset during volatile or bearish crypto market conditions, the company said in an announcement on Tuesday.

USDtb is structured similarly to fiat-backed stablecoins like USDT and USDC, holding cash and cash-equivalent reserves to maintain a 1:1 peg to the U.S. dollar. Notably, USDtb’s reserves consist of a 90% allocation to BlackRock’s BUIDL fund, making it the highest allocation among stablecoins tied to tokenized real-world assets. Ethena highlights this reserve strategy as key to scaling USDtb efficiently without liquidity constraints.

The rollout of USDtb arrives as part of Ethena’s strategy to strengthen its broader financial ecosystem. The protocol’s governance body approved a measure to use USDtb as a backing asset for Ethena’s flagship yield-bearing token, USDe, during periods of negative derivatives funding rates. By reallocating hedged positions into USDtb, Ethena aims to stabilize yields and reduce exposure to derivative market risks during bearish trends.

"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,” Ethena founder Guy Young said in a statement.

In addition to internal ecosystem utility, Ethena plans to integrate USDtb as collateral for margin trading on centralized exchanges already partnered with the protocol. This initiative aligns with Ethena’s broader efforts to establish itself as a leader in the tokenized asset space.

To support USDtb’s expansion, Ethena has submitted an application for a $1 billion allocation from Spark’s Tokenization Grand Prix program, which seeks to scale tokenized real-world assets (RWA), further positioning Ethena at the forefront of RWA integration in DeFi if allocated.

USDtb has undergone rigorous security measures ahead of its launch, Ethena noted. The stablecoin’s smart contracts passed three audits from leading firms—Pashov, Quantstamp, and Cyfrin—with no critical or medium-level findings. A community-led audit conducted by Code4rena also confirmed no significant vulnerabilities.

To ensure seamless cross-chain functionality, USDtb has been launched as a LayerZero-powered OFT (Omnichain Fungible Token), facilitating transfers across Ethereum, Base, Solana, and Arbitrum networks. Stargate serves as the bridge for these cross-chain movements, enhancing accessibility for users.

Ethena has also secured key partners for USDtb’s launch, including custodial services from Copper, Zodia, Komainu, and Coinbase Web3 Wallet, alongside liquidity provision from Jump, Cumberland, Wintermute, Amber, GSR, and SCB Limited.

The introduction of USDtb follows a strong period of investor interest in Ethena’s ecosystem, further evidenced by the recent surge in ENA governance token prices. The token is up almost 100% in the past month, reaching $1.22, its highest level since April 2024 – a 520% increase from its yearly low. Notably, this growth was partially driven by a $500,000 purchase from Trump-affiliated World Liberty Financial.