What is Ethena Labs (USDtb)?

USDtb is a USD stablecoin developed by Ethena Labs, positioned as a “digital dollar for the internet economy.” Its key features include:

• Reserve Infrastructure: The main component of USDtb’s reserves consists of tokenized forms of corporate short-term treasury/money-market products, such as BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL). Additionally, a limited amount of stablecoin reserve is maintained for quick liquidity.
• Issuance/Redeem (mint/redeem): Issuance is conducted by Pallas (BVI) Ltd. (Pallas Foundation / Pallas Fund structure); the mint/redeem flow settles on-chain, but pricing and approval are handled via an off-chain RFQ server (last-look / verification). Participation generally requires KYC/whitelist.
• Corporate Partners: The project reportedly collaborates with intermediary institutions such as BlackRock (BUIDL), Securitize (tokenization/transfer agent), and BNY Mellon, along with listing/liquidity partners (Bybit, Zodia, Copper, etc.).

How Does Ethena Labs (USDtb) Work?

1. Legal/Corporate Structure: USDtb is issued by Pallas (BVI) Ltd.; Pallas Foundation and Pallas Fund are structured to manage the reserves and ensure the stablecoin’s stability. This setup aims to keep the issuer and reserves “bankruptcy-remote” (isolated from liquidation/insolvency risk).

2. Reserve Components: Reserves consist of tokenized money-market/treasury products (e.g., BlackRock BUIDL) and stablecoins held in corporate custody for instant liquidity. Tokenization and fund transfer agency roles are coordinated with Securitize and similar institutions.

3. Mint / Redeem Flow (Technical):

   • The user or institution becomes an eligible “Mint User” (whitelisted, KYC-compliant) for issuance.

   • Pricing/transaction details are determined through an off-chain RFQ server; this RFQ server submits EIP-712 / EIP-1271 signed orders on-chain. The RFQ server has “last-look” verification authority to filter malicious orders.

   • On-chain mint/redeem is approved by a contract controlled by admin authorities (Pallas); per-block maximum mint/redeem limits and asset-specific limits exist, providing a control layer against liquidity shocks.

4. Security / Audit / Transparency: Ethena claims that smart contracts underwent a comprehensive audit program; reports from Quantstamp, Cyfrin, and Pashov have been published (no critical/high issues reported). Additionally, reserve attestations and real-time dashboards are provided.

5. On-Chain Identity: The USDtb token contract is publicly available on Ethereum; transfers/mint activities can be tracked via Etherscan. (Contract address and transaction history can be verified with public records.)

The design is a hybrid on the axis of “corporate trust + blockchain accessibility.” Due to control authorities (admin/RFQ last-look, whitelist), it is not fully permissionless; this is a deliberate choice for regulatory compliance.

What is the Purpose of Ethena Labs (USDtb)?

The main goal of USDtb is to provide a stablecoin compatible with the traditional financial system, regulated, and with high liquidity. This allows it to serve both the decentralized finance (DeFi) ecosystem and users in traditional financial institutions. USDtb has also been launched as a regulatory-compliant stablecoin in the U.S. under the GENIUS Act.

Who Founded Ethena Labs (USDtb)?

The project’s development and operational intellectual ownership belong to Ethena Labs; the founder and CEO is Guy Young. Ethena was founded in 2023 and quickly gained attention with USDe; it established its presence in the market with token and treasury strategies. Pallas (BVI) Ltd., Pallas Foundation, and Pallas Fund are documented as the legal issuer of USDtb; additionally, a management structure similar to Athene handles reserve management (docs.usdtb.money). Therefore, the technical and corporate implementation combines Ethena Labs with a separate BVI issuance structure.

Who Are the Investors of Ethena Labs (USDtb)?

Early investors in Ethena include Dragonfly (lead seed), Arthur Hayes / Maelstrom, major derivatives exchanges, and various VC/trading firms; later rounds reportedly included strategic partnerships with corporate players such as Brevan Howard Digital and Franklin Templeton. In USDtb’s reserve mechanism and distribution, BlackRock’s BUIDL product (fund manager/sponsor), Securitize (tokenization/transfer agent), and BNY Mellon are shown as partners; liquidity/trading partners include Bybit, Zodia, Copper, among others. These partnerships are crucial for both liquidity and corporate access.

$USDtb Tokenomics

1. Key Numerical Metrics (Snapshot):

• Price: ~1 USD (peg target).
• Market cap and circulating supply: Sources like CoinMarketCap / CoinGecko show USDtb’s market cap in the billions (e.g., CoinMarketCap reports ~1.48B market cap, circulating supply ~1.484B tokens — figures are variable; always verify latest numbers via CMC/CG/Etherscan).

2. Contract & On-Chain Information:

• USDtb token contract is publicly available on Ethereum; transfer/mint activities can be tracked on Etherscan. Contract activity and inflows/outflows from centralized exchanges can be verified here.

3. Supply Control / Stabilization Mechanism:

• Mint/Redeem: Supply is dynamically managed via mint/redeem. Since issuance is controlled by Pallas, supply is added or removed according to market needs. Off-chain RFQ + on-chain settlement ensures price and quantity control; per-block limits and asset-specific limits are implemented.

4. Backing Distribution – Risk Profile:

• Main backing: tokenized money-market/treasury products (e.g., BlackRock BUIDL). This connects USDtb to a “fiat-money market” RWA basket, targeting lower volatility. However, the tokenization process introduces transfer-agent/custody and third-party administrative risks. The maintained stablecoin reserve is also used for instant liquidity.

5. Security Audits & Transparency:

• Firms like Quantstamp, Cyfrin, and Pashov have audited USDtb smart contracts and published reports; Ethena ecosystem also provides reserve attestations and real-time dashboards. However, even though audit reports show “no critical” issues, the scope, parametric assumptions, and off-chain components (custody, tokenization) should be separately reviewed.

6. Liquidity & Integrations:

• Listings on Bybit, promotions on Aave/Morpho/Euler, and CEX margin acceptance increase liquidity. Additionally, according to CoinDesk, collaboration with Anchorage for U.S. onshore issuance under the GENIUS Act could expand corporate access.

Official Sources

• Official Website
• X (Twitter) Account

Latest Market Data

The post What is USDtb? | Institutional RWA-Backed Stablecoin appeared first on Coin Engineer.

Ethereum Compatibility and High Performance

Converge is fully compatible with the Ethereum Virtual Machine (EVM), allowing it to seamlessly run Ethereum-based smart contracts and decentralized applications (dApps). This ensures that existing DeFi protocols and tools can operate on the Converge network without any need for modification.

The network’s initial partners include prominent DeFi projects such as Pendle, Avara (the parent company of Aave Labs), Ethereal, Morpho, and Maple Finance. Custody services will be provided by industry leaders Copper, Fireblocks, Komainu, and Zodia. Interoperability will be supported through LayerZero and Wormhole, while RedStone will handle oracle services.

Ethena and Securitize Make a Major Move

Ethena is preparing to migrate its $6 billion DeFi ecosystem to the Converge network. The company will also offer its yield-bearing USDe token and BUIDL-backed USDtb stablecoin on the platform. At the same time, Securitize will bring its tokenized real world assets to Converge, including BlackRock’s BUIDL token and the newly issued Apollo credit fund token.

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Ethena’s native governance token, ENA, will serve as a stakeable asset on the network through sENA, securing the blockchain with a permissioned validator set operated by traditional financial institutions and centralized exchanges. In addition, both USDe and USDtb tokens will function as gas tokens for the Converge network.

New Opportunities for Institutional Investors

Securitize CEO Carlos Domingo stated, “Tokenization by itself is just putting securities on another ledger. But when combined with DeFi innovations, tokenization can unlock massive opportunities.” Ethena Founder Guy Young added that Converge will enable traditional assets to be brought on-chain, creating custom money markets and allowing for the trading of assets that currently do not exist on-chain.

Designed for institutional players, Converge offers a public open network wrapped in a KYC protocol that verifies users’ identities beyond simply whitelisting wallets. This structure ensures a secure and compliant DeFi environment for investors dealing with regulated financial instruments.

Will Converge Become the Future Blockchain Platform?

Converge is expected to become one of the largest platforms that unites traditional and decentralized finance in the coming years. It aims to serve as a critical bridge that allows institutional investors to step into the DeFi world with confidence.

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Backing Structure and Liquidity

USDtb derives 90% of its reserves from BlackRock’s USD Institutional Digital Liquidity Fund, while the remaining 10% consists of stablecoins like USDC. This reserve model ensures liquidity, especially during weekends or periods when U.S. Treasury bond markets are unavailable.

Ethena’s Head of Growth, Seraphim Czecker, stated that USDtb has the potential to scale to $100 billion, emphasizing its ability to create a yield floor tied to U.S. Treasury Bill rates in bearish market conditions.

José Maria Macedo, co-founder of Delphi Labs, predicted that USDtb would become the largest tokenized treasury product within a month of its launch. The stablecoin’s smart contract infrastructure underwent three separate audits in October—conducted by Pashov, Quantstamp, and Cyfrin—with no high or medium-level vulnerabilities identified.

With USDtb’s launch, Ethena aims to optimize capital allocation in declining markets while further strengthening the mechanisms supporting its existing stablecoin, USDe. This strategic move also minimizes associated risks while bolstering investor confidence.

Stablecoin Market Outlook

Ethena’s USDe recently surpassed Dai (DAI) to become the third-largest stablecoin. However, its market cap of $5.87 billion still significantly trails behind leaders USDT ($140.6 billion) and USDC ($42.1 billion).

The overall stablecoin market has exceeded $200 billion in value, marking rapid growth. Analysts anticipate this figure to double to $400 billion by 2025, driven by the potential approval of stablecoin regulations in the United States.

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The post Ethena Labs Launches USDtb Stablecoin with Strong Debut appeared first on Coin Engineer.

On Monday, the Avalanche (AVAX) network will undergo the Etna upgrade, aiming to enhance network performance. Meanwhile, the FLOKI community is preparing for a much-anticipated marketing announcement. A key development is the ARB token unlock, with 93.65 million ARB tokens worth $91 million being released, potentially increasing selling pressure. Additionally, Ethena and BlackRock will share updates about their stablecoin, USDTb, while Cardano (ADA) will see the unlocking of 18.53 million tokens, valued at $20 million, raising concerns among ADA investors.

On Wednesday, economic reports and gaming partnerships will dominate the agenda. The Eurozone’s annual inflation rate will be announced, which could indirectly impact crypto markets. Another key event is the launch of Captain LaserHawk, a game developed by Ubisoft in collaboration with Arbitrum (ARB), potentially driving interest in ARB. However, the day’s highlight is the FED’s interest rate decision and subsequent statements from FED Chair Jerome Powell. Any rate adjustment or Powell’s comments could lead to volatility in Bitcoin and altcoins.

On Thursday, the focus shifts to the U.S. with the release of GDP figures. Any deviation from expectations could affect market sentiment. Additionally, Coinbase will delist Wrapped Bitcoin (WBTC), which might raise concerns for Bitcoin-linked projects. The LayerZero community will also hold a referendum to activate the fee switch feature, which could significantly impact ZRO token dynamics.

Finally, on Friday, the U.S. will release the Core Personal Consumption Expenditures (PCE) index, a key inflation metric. This data could influence how the FED adjusts its policies, potentially driving market volatility.

This week’s developments, including token unlocks for ARB and ADA, may increase selling pressure, while major economic data from the U.S. and FED decisions will shape overall market direction. On a positive note, partnerships like Ubisoft’s Arbitrum-based game might drive interest in specific tokens.

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