Ethena Labs revealed plans on Thursday to introduce the UStb stablecoin, which will be backed by BlackRock and Securitize. This new product will provide an alternative fiat stablecoin option alongside the existing USDe. The reserves of UStb will be invested in BlackRock’s USD Institutional Digital Liquidity Fund, which is tokenized by Securitize.
In a recent announcement on September 26, Ethena Labs introduced UStb as a separate offering from USDe, offering users and exchange partners a product with a different risk profile. Moreover, integrating UStb can benefit USDe during periods of low funding conditions, allowing for dynamic adjustments in its backing composition based on interest rate environments.
The introduction of UStb marks a significant milestone for Ethena Labs, with collaborations with Securitize and BlackRock’s BUIDL being pivotal in bringing this product to market. The ENA token price surged by over 16% in response to the UStb stablecoin launch, currently trading at $0.3659. There has been increased trading activity, particularly in derivatives markets, with a noticeable spike in open interest within the last 4 hours.
Despite a recent domain hack leading to the temporary suspension of their website, Ethena Labs assured the security of user funds and the core protocol. The overall response to the launch of UStb stablecoin has been positive, highlighting the growing interest and support for Ethena Labs’ developments within the crypto community.