Ethena has announced its plan to launch a new stablecoin named UStb, which will be backed by investments in BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL).
This is the second stablecoin to be introduced by Ethena, following the launch of USDe earlier this year.
Unlike USDe, which derives its value from the cash-and-carry trade, UStb will be an independent product with a different risk profile.
According to the team, UStb will also assist in managing risk during times of market volatility by allowing Ethena’s governance to reallocate backing assets to UStb when necessary.
However, some industry stakeholders have expressed concerns about USDe’s safety, as volatility in the crypto market can quickly unravel the cash-and-carry strategy.
