Ethena Unveils New Stablecoin with BlackRock Backing

Ethena is gearing up to release UStb, a new stablecoin developed in partnership with Securitize, a platform specializing in real-world asset tokenization.

UStb will operate similarly to other stablecoins, with plans to back it by BlackRock’s tokenized USD Institutional Digital Liquidity Fund (BUIDL), which invests in U.S. dollars and short-term U.S. Treasury bills. Since its launch in March, BUIDL has grown rapidly, managing over $522 million, and now ranks as the largest tokenized U.S. Treasuries fund.

The broader tokenized securities market has exceeded $2 billion, while Securitize has facilitated over $950 million in tokenized investments, partnering with companies like BlackRock and KKR.

UStb will be a completely separate offering from Ethena’s USDe stablecoin, which was launched earlier this year and quickly became a top-five stablecoin by market cap.

Unlike UStb, USDe is supported by a mix of crypto assets and relies on derivative strategies, exposing it to risks like market volatility. In August, USDe briefly lost its dollar peg during a market downturn but recovered swiftly.

Ethena plans to use UStb as a buffer for USDe in turbulent markets, allowing the reallocation of assets to stabilize USDe if needed. The company also aims to integrate UStb as collateral on major exchanges such as Bybit and Bitget. In February, Ethena raised $14 million in funding, securing a $300 million valuation.