Ethena (ENA) prepares to launch a new stablecoin, UStb, in collaboration with the tokenization platform Securitize. UStb will be backed by BlackRock’s Ethereum 
$3,111-based USD Institutional Digital Liquidity Fund (BUIDL). This stablecoin will operate similarly to traditional stablecoins and will invest in the BUIDL fund.
UStb and USDe: Different Risk Profiles
BlackRock’s BUIDL fund has become the largest tokenized U.S. Treasury fund since its launch in March, managing over $522 million in assets. The fund invests in U.S. dollars, short-term U.S. Treasury bills, and repurchase agreements. The total market for tokenized government bonds has now surpassed $2 billion.
Developed independently from Ethena’s existing stablecoin USDe, UStb will offer a different risk profile. Launched in February, USDe quickly became the fifth-largest stablecoin, with a circulating supply of $2.6 billion.
Unlike traditional stablecoins, USDe employs derivative hedging strategies and does not hold direct fiat or asset collateral. Instead, it uses cryptocurrencies like Ethereum, Bitcoin 
$89,988, and Solana 
$215 as collateral, maintaining a 1:1 peg to the U.S. dollar through an arbitrage-based issuance and redemption system. However, USDe is exposed to counterparty risk in derivative markets and collateral volatility, which could hinder its stability in adverse market conditions.
The Role of UStb in Risk Management
According to the Ethena team, UStb will play a crucial role in managing the risks that USDe may face during challenging market conditions. If deemed necessary, Ethena’s management can close the protective positions that underpin USDe during negative funding rate periods and reallocate supporting assets to UStb, thus helping to stabilize USDe.
UStb is also planned to be used as margin collateral on centralized exchanges such as Bybit and Bitget, offering investors an alternative collateral option.
In February, Ethena Labs raised $14 million in a strategic investment round co-led by Dragonfly and Arthur Hayes’ family office, Maelstrom, boosting its total valuation to $300 million.
