Ethena Rolls Out BlackRock-Backed Stablecoin as USDe Hits $6 Billion

Ethena, the DeFi protocol behind this year's fastest-growing stablecoin, has launched a new dollar-pegged token backed primarily by BlackRock's tokenized money market fund, marking a significant shift in its approach to generating stable yields.

The new USDtb stablecoin will hold 90% of its reserves in BUIDL, a tokenized fund issued jointly by asset management giant BlackRock and tokenization firm Securitize. USDtb's integration with BlackRock's BUIDL token introduces the first major stablecoin to use a regulated money market fund as primary collateral.

The launch comes just as Ethena's main stablecoin, USDe, reached nearly $6 billion in circulation, surpassing Sky's (MakerDAO) USDS (formerly known as DAI) to become the third-largest stablecoin in crypto.

"In light of the rapidly accelerating demand for different stablecoin options, we saw a clear opportunity to provide a new product that offers users an entirely different risk profile from USDe without them having to leave our trusted ecosystem," Ethena founder Guy Young stated.

Unlike USDe, which generates its impressive 27% annual yield by trading crypto perpetual swaps, USDtb aims to provide a more conservative 1:1 dollar-pegged option that could help stabilize the protocol during market downturns. When crypto markets turn bearish and funding rates go negative, Ethena can now shift assets from USDe's derivatives positions into USDtb's traditional money market holdings.

The protocol has enlisted major players to support the new token's launch. Copper, Zodia Custody, Komainu, and Coinbase Institutional will provide custody services. Jump, Cumberland, Amber Group, GSR Markets, and SCB Limited have signed on as liquidity providers.

Ethena is also pushing for broader adoption of USDtb. At the end of November, it applied with Securitize for allocation in Sky's $1 billion Tokenization Grand Prix program and is working to get the token accepted as trading collateral on centralized exchanges.

The launch coincides with growing institutional interest in Ethena's ecosystem. World Liberty Financial, a DeFi platform led by Donald Trump Jr., purchased $500,000 worth of ENA tokens on Saturday, helping drive a 25% weekend rally as part of the firm's broader $45 million December push into DeFi projects.

ENA plunged nearly 90% from its April high of $1.52 to $0.18 in September before reversing course. The token broke through the $1 resistance level last week and currently trades at $1.19, according to CoinGecko. Trading charts show $2.34 as the next major technical target based on Fibonacci extension levels.

World Liberty Financial's recent investment spree marks its growing influence in the DeFi sector. The platform converted 250,000 USDC into Ondo (ONDO) tokens on December 15, pushing that token to an all-time high of $2.14. The Trump-affiliated project has already raised $72 million through its WLFI token sale and secured a $30 million investment from Tron founder Justin Sun, who joined as an adviser last month.

The protocol has amassed $200 million in fees during its first ten months of operation. On November 15, the Ethena Foundation announced it would share this revenue with token holders.

A series of integrations with major platforms has fueled its growth. After joining Aave's lending platform on June 22, USDe quickly became its fastest-growing asset by deposit volume, according to Messari research. The stablecoin gained further traction when Wintermute, a major crypto trading desk, began accepting it as collateral on October 12.

The protocol's yield generation has fluctuated significantly since its February launch. Staked USDe hit its highest yield of 55.9% on March 7, dropped to 4.3% on August 8, and currently offers 27% annual returns. These yields come from a combination of staked ETH rewards and trading strategies in the perpetual futures markets.

The launch of USDtb adds a new chapter to Ethena's risk management strategy, as the protocol faces both growing institutional adoption and increased scrutiny of its existing yield-generation model. Whether this two-token approach will set a new standard for DeFi stability remains to be seen as the protocol enters its second year of operations.