Decentralized finance company Ethena Labs launched its new stablecoin, USDtb, on December 16, quickly accumulating $65.4 million in total value locked on its first day. This stablecoin is designed to operate similarly to existing options like Tether (USDT) and USD Coin (USDC), being backed by cash and cash equivalents at a 1:1 ratio. The introduction of USDtb is expected to assist users of Ethena’s main product, USDe, in navigating challenging market conditions.
As part of its operational strategy, Ethena plans to close the hedging positions underlying USDe and shift its backing assets to USDtb, which could help mitigate associated risks. The firm’s objective is to provide increased stability and security for its users during volatile market periods. Given the current economic climate, this launch positions USDtb as a potentially valuable asset for traders.
Forecasts for USDtb’s success are optimistic, with predictions suggesting it could become the leading tokenized treasury product within a month post-launch. Ethena’s team believes that the stablecoin possesses the capability to scale up to $100 billion. This scalability will be driven by the firm’s ability to allocate capital effectively even in bearish market scenarios, particularly by establishing a yield floor linked to T-Bill rates.
USDtb is predominantly supported — 90% — by BlackRock’s USD Institutional Digital Liquidity Fund, in collaboration with a blockchain tokenization firm. The remaining 10% of reserves will comprise stablecoins like USDC, ensuring additional liquidity during times when U.S. Treasury bill markets are not operational.
Rigorous scrutiny has also been applied to USDtb’s smart contracts, which underwent three comprehensive audits with no significant findings. Approval from Ethena’s Risk Committee prompted the green light for this stablecoin. Ethena’s USDe stablecoin has recently overtaken Dai to claim the position of the third-largest stablecoin, although its market cap remains significantly less than those of USDT and USDC. With the total stablecoin market cap now exceeding $200 billion, experts anticipate its growth to continue, potentially reaching $400 billion by 2025.
