Ethena Labs and Securitize Propose USDtb Stablecoin for Spark's $1B Tokenization Grand Prix

The $1B Tokenization Grand Prix competition aims to onboard real-world assets (RWAs) into DeFi by offering liquidity to selected participants

Ethena Labs and tokenization platform Securitize have jointly submitted a proposal to integrate Ethena’s new stablecoin, USDtb, into Spark's $1 billion Tokenization Grand Prix.

The competition aims to onboard real-world assets (RWAs) into DeFi by providing liquidity to selected participants, expanding the range of tokenized assets in decentralized ecosystems.

Ethena and Securitize's proposal centers around a unique swap facility between USDtb and Ethena’s synthetic stablecoin, USDe. This innovation will enable participants in the Sky ecosystem (formerly MakerDAO) to dynamically adjust liquidity and risk based on market conditions and interest rate trends.

Ethena's substantial contribution to the Sky ecosystem, generating nearly $120 million in annual revenue, positions USDtb to bolster USDe's performance, especially during challenging funding conditions, by enabling dynamic adjustments to its backing composition.

Set to launch next week, USDtb is backed by BlackRock's USD Institutional Digital Liquidity Fund (BUIDL), a tokenized US Treasury fund on the Ethereum blockchain. With over $533 million in tokenized assets under management, BUIDL provides a unique foundation for USDtb, presenting an alternative risk profile compared to USDe.

While USDe utilizes derivative hedging strategies and is subject to cryptocurrency market fluctuations, USDtb's backing by traditional financial instruments offers a more conservative option.

The proposal will be evaluated by a panel that includes Phoenix Labs and Steakhouse Financial based on criteria such as liquidity, pricing competitiveness, and alignment with Spark's strategic objectives. Ultimately, Sky tokenholders will decide on the final selection through a governance vote.