The post Ethena’s USDtb Stablecoin Achieves $65 Million in Value Locked on Launch Day, Suggests Growth Potential appeared on BitcoinEthereumNews.com.

Ethena Labs has successfully launched its new stablecoin, USDtb, attracting over $65 million in total value locked within just 24 hours of its debut. This remarkable feat marks a significant milestone in decentralized finance, underscoring growing investor confidence in stablecoins amid market volatility. “USDtb is set to redefine the stability and utility of digital assets,” stated José Maria Macedo of Delphi Labs, highlighting its potential impact. USDtb, launched by Ethena Labs, has quickly grown to over $65 million in value. With robust backing, it promises significant market stability and investor appeal. USDtb Launches with Strong Demand and Backing On December 16, Ethena Labs introduced the USDtb stablecoin, which garnered notable attention by accumulating over $65 million in total value locked (TVL) on its first day. The stablecoin aims to maintain stability akin to prominent alternatives such as Tether (USDT) and USD Coin (USDC), being backed by cash or cash equivalents at a 1:1 ratio. This strategic launch is crucial for investors seeking safer assets, particularly during turbulent market phases. The Role of USDtb in Risk Mitigation According to Ethena Labs, the introduction of USDtb will enhance risk management strategies for its flagship product, USDe. By allowing Ethena to close hedging positions of USDe and reassign backing assets to USDtb, the firm aims to mitigate market-related risks effectively. This structured approach could serve as a buffer against adverse market conditions, providing holders with a more secure asset to navigate potential downturns. Backing and Growth Potential of USDtb USDtb is 90% supported by BlackRock’s USD Institutional Digital Liquidity Fund, a collaboration with blockchain tokenization firm Securitize. This solid backing provides a foundation for expected growth. Ethena’s head of growth, Seraphim Czecker, shared that the stablecoin could achieve a market cap of $100 billion, driven by its capacity to allocate capital in bearish…

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Filed under: News - @ December 17, 2024 2:23 am