Breaking: Ethena Labs Launches UStb Stablecoin With BlackRock And Securitize

Varinder Singh
September 26, 2024
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Ethena Labs Launches UStb Stablecoin With BlackRock And Securitize

Highlights

  • Ethena Labs announces UStb stablecoin collateralized by BlackRock and Securitize.
  • UStb will be fully backed by BlackRock BUIDL in partnership with Securitize.
  • ENA price skyrockets over 16%.

Ethena Labs on Thursday said it will launch UStb stablecoin collateralized by BlackRock and Securitize, enabling a separate fiat stablecoin product alongside USDe. UStb will invest its reserves in BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) tokenized by Securitize.

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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 adjust 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 required, Ethena can even close hedging positions on USDe and re-allocate those backing assets to UStb to further reduce risks with negative funding rates.

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ENA Price Shoots Over 16%

ENA price has skyrocketed over 16% in response to UStb stablecoin launch news, 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.

Derivatives market saw massive buying of the token by traders. Coinglass data indicates ENA futures open interest shoots over 30% in the last 4 hours. Huge buying activity was noticed across exchanges such as Binance, Bybit, and Coinbase, taking the total ENA futures OI to $165.76 million.

Recently, Ethena Labs halted website after a domain hack and urged users to disconnect wallets and avoid transactions until further announcement. Ethena Labs’ domain breach prompts website shutdown, but core protocol and user funds remained secure.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.