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Ethena Labs Launches UStb Stablecoin With BlackRock And Securitize
Ethena Labs on Thursday said it will launch UStb stablecoin collateralized by BlackRock and Securitize, enabling separate fiat stablecoin product alongside USDe. UStb will be fully backed by BlackRock BUIDL in partnership with Securitize.
Ethena Labs Announces UStb Stablecoin
In an X post on September 26, Ethena Labs announced its newest product offering – UStb. The company added that it will exist as an isolated product and separate from USDe, offering a new product with a differentiated risk profile to USDe for users and exchange partners.
However, USDe can benefit from incorporating UStb during periods of weak funding conditions. USDe backing composition can dynamically adjusts between basis positions and liquid stable products in different interest rate environments.
The crypto community has shared repeated concerns with USDe on how the protocol responds to negative funding rate environments. Notably, Ethena’s sUSDe has not endured a single week of negative funding despite bearish conditions over the last 6 months.
If governance deems it necessary and appropriate in negative funding conditions Ethena can close hedging positions and re-allocate those backing assets to UStb to further ameliorate risk associated with negative funding rate environments pic.twitter.com/MrPQfhXtPO
— Ethena Labs (@ethena_labs) September 26, 2024
ENA price has skyrocketed over 16% in the past 24 hours, with the price currently trading at $0.3659. The 24-hour low and high are $0.3071 and $0.3728, respectively. Furthermore, the trading volume has increased in the last 24 hours.
Varinder Singh
Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.
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