Ethena Stablecoin USDtb Joins the Competition for $1B Tokenization Prize

Key Points:

• Ethena and Securitize submitted a proposal for Spark’s Tokenization Grand Prix, competing for up to $1 billion in liquidity with their USDtb stablecoin.
• The Ethena stablecoin USDtb will be over 90% backed by BlackRock’s BUIDL, surpassing reserve allocations of most stablecoins.

Ethena and Securitize have submitted a joint proposal to participate in the Tokenization Grand Prix of the Spark platform for the introduction of the USDtb stablecoin.

Read more: Ethena Labs Partners with Swell L2 for Rapid Transactions 

Ethena and Securitize Vie for $1 Billion in Tokenization Grand Prix

Ethena stablecoin USDtb will be predominantly collateralized by BlackRock’s USD Institutional Digital Liquidity Fund, BUIDL, with more than 90% of its reserves invested in the tokenized fund. Ethena said this reserve allocation is more than what many other stablecoin issuers maintain.

The Tokenization Grand Prix, introduced by Spark—a lending protocol based on Sky—provides real-world asset issuers with the opportunity to gain as much as $1 billion in liquidity.

Applications for the competition opened on August 12, 2024, after the announcement in June. Spark is part of the Sky ecosystem, which rebranded from MakerDAO and replaced its stablecoin DAI with USDS.

Ethena Stablecoin USDtb Combines Stability with High Reserve Allocation

Ethena’s proposal includes a swap facility for USDtb and USDe to let the Sky ecosystem dynamically manage allocations based on fluctuating interest rates.

The Ethena stablecoin USDtb operates similarly to traditional stablecoins but features additional yield-generating mechanisms. Users can lock ETH or ETH liquid staking tokens to issue USDe, benefiting from ETH staking interest and funding rate futures.