Ethena Will Issue a Stablecoin Backed by BlackRock’s BUIDL Fund

Ethereum-based blockchain platform Ethena is teaming up with real-world asset tokenization company Securitize to launch a new stablecoin called UStb.

This stablecoin will work similarly to other stablecoins and will have its reserves invested in BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), which is tokenized on the Ethereum blockchain.

The BUIDL fund invests in US dollars, short-term US Treasury bills, and repurchase agreements.

This fund has quickly become the largest tokenized US Treasuries fund since its launch in March this year, with over $522 million in assets under management.

According to data from asset management firm 21.co, which is also the parent company of 21Shares, the tokenized government securities market is now worth over $2 billion.