BlackRock and Securitize Partner to Launch Stablecoin on Ethena Labs

The crypto market is set to see a new addition to its fiat-backed stablecoin offerings with the launch of UStb. Developed by Ethena Labs and backed by BlackRock’s on-chain BUIDL fund, UStb is designed to provide users and exchanges with a differentiated risk profile.

Announcing the stablecoin, Ethena Labs revealed it was developed in partnership with Scrutinize. UStb adds to the existing services provided by Ethena’s USDe stablecoin, offering users a chance to diversify their exchange methods and manage risk more effectively. Unlike USDe, UStb operates independently and is not linked to any other stablecoins. If you are a user seeking more stablecoin options that prioritize credibility and stability, UStb is designed with you in mind.

There are reports suggesting that UStb could act as a support mechanism for USDe during periods of weak funding. In the event of high-risk negative funding situations, Ethena’s ecosystem may hedge positions to reduce risk by shifting assets to UStb.

Ethena Labs is making strides to expand its stablecoin offerings for users and crypto exchanges. With UStb, users and exchanges can now leverage two different products to optimize margin collateral. A common concern among users has been USDe’s reaction to negative funding rates. Although USDe has not encountered significant issues with negative funding recently, Ethena Labs has implemented dynamic systems to handle various interest rate scenarios.

More information on upcoming activities and the exchanges expected to integrate UStb will be announced soon. Additional updates will clarify how the stablecoin will impact the broader crypto market. The launch has already sparked positive reactions, with Ethena Labs’ token seeing a price increase.