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Ethena Labs: On December 16, Ethena Labs gained headlines with the launch of new stablecoin USDtb, which has over $65.4 million TVL after the first 24 hours. The strong debut reflects solid interest from the decentralized finance (DeFi) community, which bodes well for the project’s structure and support.
Similar to its competitors, Tether (USDT) and USD Coin (USDC), USDtb will take the form of a cash-backed stablecoin on a 1:1 basis with cash or cash equivalents. It underscores USDtb’s potential to bring more stability to holders of its flagship synthetic dollar product, USDe, in 1864528700 s of tough market conditions.
The statement did note on Dec. 16: “With the merging of Ethena into the Tether family, Ethena will have the ability to close the hedging positions that were underlying USDe and re-allocate its backing assets to, therefore, further ameliorate risks associated with the token.”
GREAT DRAMA AND HIGH SEQUEL HOPES
And already, the voices of industry optimism are emerging. José Maria Macedo, co-founder of Delphi Labs, thinks USDtb will become the go-to tokenized Treasury product in its first month alone.
In the meantime, Ethena’s head of growth, Seraphim Czecker, estimates that USDtb’s growth potential could reach $100 billion, noting its capacity to allocate capital in bearish trends effectively.
“A round all-time low foundation around APY via T-Bill rate is now possible, meaning proper capital allocation even in down markets,” Czecker said.
The stablecoin is primarily backed by BlackRock’s USD Institutional Digital Liquidity Fund via a partnership with blockchain tokenization company Securitize.
The U.S. dollar reserves backing USDtb are intended to be approximately 90% tied in USDtb’s reserves with BlackRock’s fund and 10% in liquidity assets such as USDC to provide instant liquidity on weekends and on days when U.S. Treasury markets are closed.
Security Audits, Approval of Risks
USDtb was run through a series of security tests before launch. Ethena Labs announced its smart contracts received three independent audits from Pashov, Quantstamp, and Cyfrin in October, with no critical or medium-level issues found. The project was also approved in late September by Ethena’s Risk Committee, but final details were only put in place earlier this month.
Block Analiticia, who is part of Ethena’s risk evaluation committee, noted the inclusion of USDC as an additional liquidity option. This allocation allows for flexibility and stability during non-market hours, their proposal stated.
An Expanding Stablecoin Market
The debut of USDtb comes as the stablecoin market is experiencing rapid growth. Another well-known stablecoin from the firm is Ethena’s USDe, which recently passed Dai (DAI) to capture the position as the third-largest stablecoin by market capitalization.
But USDe’s $5.87 billion market cap is dwarfed by USDT’s $140.6 billion and USDC’s $42.1 billion, data from DefiLlama shows.
In general, the stablecoin sector has surpassed a $200 billion market cap, and there’s speculation this figure will climb more. Crypto asset manager Bitwise edges closer than any other crypto fund to the sentiment, forecasting the market will grow to $400 billion by 2025, bolstered by imminent U.S. stablecoin regulation.
Looking Ahead
Supported by a strong launch and BlackRock’s well-established investment with some of the largest institutions, Ethena Labs has paved the way for significant future scaling with USDtb. With an increase in demand for proven, cash-collateralized stablecoins, USDtb does seem to be positioned for a lot of attraction, especially in a volatile market.
Cointelegraph contacted Ethena Labs for more details but did not receive additional comments before publication. Ethena clarifies misconceptions about ENA token staking in order to read related opinions.USDtb from Ethena Labs, a cash-backed stablecoin, boasts a $65 million value in under 24 hours, reflecting robust investor confidence and aggressive adoption.
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FAQs
What is the significance of USDtb?
Because, unlike projects such as Tether or USD Coin, they have supernova. Backed 1:1 with cash-equivalent securities and predominantly invested into the BlackRock USD Fund, USDtb offers full liquidity, stability, and robust risk management in times of extreme uncertainty.
What caused USDtb to surge $65 million in 24 hours?
Ethena’s proven DeFi success, trusted backing partners like Blackrock, and potential to scale efficiently amidst growing demand for stablecoin solutions spurred investor interest.
What potential growth does USDtb have in the future?
They anticipate that USDtb will hit $100 billion in a market currently characterized by bearish phases and coin stability, as well as high liquidity through institutional relationships with firms like BlackRock, resulting in more efficient capital allocation.
