USDtb: The Ethena stablecoin backed by BlackRock's digital funds
Stablecoins have become a cornerstone of the crypto ecosystem, providing stability in a market known for its volatility. Among recent innovations is USDtb, a new stablecoin from Ethena Labs that leverages BlackRock's tokenized funds to create a reliable digital dollar alternative. Starting mid-October 2025, USDtb is becoming a fully compliant US-based stablecoin, with a new regulated custodian and issuer, the Anchorage Digital crypto bank.
This article examines USDtb's unique structure, its relationship with Ethena's existing USDe stablecoin and the way it bridges traditional finance with decentralized systems to offer a differentiated risk profile for both retail and institutional users.
Key Takeaways:
USDtb is a blockchain-based USD stablecoin primarily backed by BlackRock's BUIDL tokenized treasury fund. It provides institutional-grade stability with 24/7 accessibility in volatile market conditions.
Starting in mid-October 2025, the issuance of USDtb will be handled within the US by Anchorage Digital Bank, the only federally regulated crypto bank.
Looking to trade USDtb tokens? Bybit now offers the USDtb/USDT Spot trading pair.
What is USDtb?
USDtb is a blockchain-based USD stablecoin primarily backed by the BlackRock BUIDL tokenized treasury fund. It provides institutional-grade stability with 24/7 accessibility in volatile market conditions.
Launched in December 2024 by Ethena Labs, USDtb follows a traditional fully-backed stablecoin model in which each token represents one US dollar. This structure ensures value stability and transparency through a direct 1:1 backing relationship.
Over 90% of USDtb reserves are invested in the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which holds cash, repurchase agreements and US Treasury instruments. Starting on Oct 15, 2025, the remaining proportion will be shifted to USD fiat reserves. From that date on, USDtb will be issued on US soil by Anchorage Digital Bank, the first and only federally approved crypto bank, signifying a major transformation in USDtb’s operational model. Until Oct 15, 2025, the stablecoin will continue to be issued by its original issuer, British Virgin Islands–based Pallas Fund (BVI) Ltd. From then on, Anchorage Digital Bank will handle the issuance and custody, and any part of USDtb’s reserves outside of BUIDL will be based on fiat holdings.
The new model is directly aimed at satisfying the requirements of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, a framework recently implemented by the US government to regulate stablecoins. By complying with GENIUS and having a federally approved issuer, Ethena aims to make USDtb easily available within the US.
What is Ethena?
Ethena (ENA), a DeFi protocol built on Ethereum, is known for USDe, its innovative synthetic dollar. The Ethena protocol bridges traditional finance with decentralized systems through sophisticated financial engineering and institutional partnerships.
Generally based on Arthur Hayes's early 2023 "Dust on Crust" blog post, Ethena has quickly established itself as a major player in the stablecoin ecosystem. The protocol employs delta-neutral strategies that pair spot crypto assets with corresponding short positions on derivatives exchanges, enabling impressive revenue while maintaining stability.
The Ethena ecosystem is governed by its native ENA token. With the introduction of USDtb, Ethena expands its offerings to include a fully-backed stablecoin supported by BlackRock's institutional-grade BUIDL fund, thus diversifying its solutions to suit different market conditions and users.
What is BlackRock's BUIDL?
BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) is a tokenized money market fund that invests in dollar-equivalent assets, including cash, US Treasury bonds and repurchase agreements. Developed in partnership with Securitize, a leading real-world asset tokenization company, BUIDL represents BlackRock's entry into the tokenized treasury space.
BUIDL is cross-chain compatible, operating across multiple blockchains including Ethereum, Arbitrum, Avalanche and Polygon. As the largest tokenized fund of its kind, BUIDL provides institutional-grade backing for USDtb, lending credibility to the stablecoin through BlackRock's established reputation in traditional finance.
What does USDtb aim to achieve?
USDtb represents Ethena's strategic approach to creating a more resilient ecosystem that can weather various market conditions, while bridging the gap between DeFi innovation and traditional financial systems. Following are some of its characteristics.
Risk diversification: USDtb provides an alternative to Ethena's USDe during unfavorable market conditions. When funding rates for USDe turn negative in bear markets, Ethena can close its hedging positions and reallocate assets to USDtb, maintaining stability within its ecosystem.
Traditional finance integration: Using BlackRock's BUIDL fund, USDtb bridges institutional finance and cryptocurrency markets, potentially attracting traditional finance (TradFi) entities hesitant to engage with cryptocurrencies.
Stability enhancement: USDtb's direct backing by treasuries provides a straightforward stability mechanism that's easier to understand and resilient during times of market stress.
Ecosystem expansion: USDtb expands Ethena's product suite, allowing users to remain within the Ethena ecosystem — even when seeking different risk profiles, or during changing market conditions.
From Oct 15, 2025, USDtb aims to satisfy the regulatory requirements of the GENIUS Act, which opens up the lucrative US market to USDtb.
How does USDtb work?
USDtb operates as a blockchain-based stablecoin through a sophisticated infrastructure designed for independence, transparency and security. Unlike traditional dollars, USDtb enables faster and cheaper transactions, while maintaining stability through institutional-grade backing.
Under the original model (to be retired on Oct 15, 2025), the minting and redemption process occurs through a smart contract system with strict controls. Only verified users who pass comprehensive KYC/AML checks can mint or redeem USDtb directly. The system’s safeguards include maximum mint/redeem limits per block and whitelisted custodian addresses to prevent manipulation.
For transparency, USDtb maintains visible on-chain wallets and publishes monthly fund administrator NAV reports. Holders can use USDtb just as any digital dollar for payments, trading or storing value, though they receive no governance rights or claims to income generated by the backing assets.
From Oct 15, 2025, the USDtb minting system will be completely overhauled. Only users onboarded by Anchorage Digital Bank will be able to mint and redeem the stablecoin directly by using fiat USD. Users can still atomically swap other stablecoins for USDtb via USDe workflows.
Benefits of USDtb
USDtb offers the following key benefits that make it a distinctive and valuable addition to the digital asset ecosystem.
Institutional grade
USDtb delivers institutional-grade security through its strategic backing by BlackRock's BUIDL fund, which comprises over 90% of its reserves. This partnership leverages BlackRock's trillion-dollar asset management expertise, providing unparalleled stability and trust.
Breadth of access
USDtb creates powerful bridges between traditional finance systems and cryptocurrency markets. For institutions, it serves as a low-friction entry point to digital assets without requiring users to navigate the complexities of volatile cryptocurrencies.
For individual users, USDtb is designed for seamless integration across DeFi protocols, use as collateral on centralized exchanges (CEXs) and prime broking venues, and direct accessibility for TradFi institutions — expanding its role within both digital and traditional financial ecosystems.
Proven expertise
USDtb combines world-class expertise from multiple industry leaders. Ethena has demonstrated remarkable execution capability by scaling USDe to over $6 billion in market cap, while BlackRock brings unmatched credibility and treasury management expertise.
24/7 accessibility
Unlike TradFi systems that are constrained by business hours and settlement windows, USDtb operates continuously on blockchain infrastructure. This enables round-the-clock trading, transfers and redemptions, regardless of traditional market hours.
Regulatory compliance
The combination of a US-based federally approved issuer and compliance with the GENIUS Act make USDtb one of the safest stablecoin assets on US soil to use for crypto operations or holdings. Anchorage Digital’s partnership with Ethena creates a completely new framework to leverage USDtb in US markets.
USDtb road map
USDtb's forward-looking strategy focuses on expanding its ecosystem presence and institutional adoption throughout 2025. The project aims to establish USDtb as a reliable dollar alternative, with multiple avenues for growth.
The move to US-based compliant issuance and custody via Anchorage Digital, to be introduced on Oct 15, 2025, is also a core development for the project.
Looking toward broader financial applications, Ethena plans to incorporate USDtb into new DeFi offerings, including perpetual swap trading, prediction markets and undercollateralized lending solutions. These expanded use cases aim to increase USDtb utility beyond simple transfers.
USDtb tokenomics
USDtb operates as a fully collateralized stablecoin with a straightforward 1:1 peg to the US dollar. Institutional-grade assets back each token, primarily BlackRock's BUIDL treasury fund (90% or more) and USD fiat reserves for the remaining proportion, creating a stable digital dollar alternative.
The token supply expands and contracts, based on market demand, through a controlled minting and redemption process. New USDtb can only be created when onboarded users deposit equivalent value in approved assets, ensuring the backing never falls below 100%.
Distribution follows a hybrid model: initial minting is restricted to KYC-verified participants, but once in circulation, USDtb tokens trade freely across blockchain ecosystems with no transfer restrictions. This approach balances regulatory compliance with the open accessibility expected within decentralized finance (DeFi).
USDtb is purely a transactional asset, with no governance functions. Holders receive no voting rights, participation in management decisions or claims to revenue generated by the backing assets — keeping the token's purpose clear as a stable medium of exchange and store of value.
Where to buy USDtb
Looking to trade USDtb tokens? Bybit now offers the USDtb/USDT Spot trading pair. To get started, you'll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the USDtb/USDT Spot trading page.
To celebrate this listing, Bybit is launching a 30-day promotional event with a 5% APR on USDtb holdings, as well as a permanent rewards program. Find out more here.
How to swap, mint or redeem USDtb
There are three main routes to attain USDtb:
You may atomically swap stablecoins with USDtb via Ethena’s USDe. Note that Ethena requires an onboarding process, during which prospective users complete the know your customer (KYC) procedure in order to satisfy anti–money laundering (AML) safeguards. This route is typically used by institutional entities interested in accessing USDtb directly through the Ethena protocol. Typical settlement times in this mode are around 24 seconds. Since the KYC procedure is done via the blockchain-based protocol, this route is available 24/7.
From mid-October, when Anchorage Digital assumes issuance and custodianship roles for the USDtb stablecoin, users onboarding via the issuer will be able to directly use wire or SWIFT transfers to purchase and mint or redeem USDtb. Both minting and redemption will have typical settlement times of around 15 minutes. Five percent of USDtb reserves will be held in fiat for 24/7 redemption liquidity.
Over-the-counter (OTC) pre-funded swaps for USDtb will also be available with zero fees for users onboarded via Anchorage Digital or T1 Trading.
Starting on Oct 15, 2025, minting and redeeming will no longer be handled by Pallas Fund (BVI) Ltd.
Is USDtb a good investment?
While USDtb offers institutional-grade stability in the stablecoin market, investors should carefully weigh its strengths and risk factors before making investment decisions.
Growth potential
Institutional backing from BlackRock's BUIDL fund, comprising 90% of reserves
Transparent structure with visible on-chain wallets and monthly NAV reporting
Strategic integration with Ethena's expanding ecosystem and USDe
Potential to attract significant capital flow from TradFi
Bankruptcy-remote design provides enhanced security and independence
Risk factors
Limited returns compared to other products, such as sUSDe, as USDtb itself doesn’t generate returns
Relatively new product with an unproven long-term track record
With its institutional backing and integration with Ethena's ecosystem, USDtb shows promise as a stable digital dollar alternative, particularly during market downturns. However, potential investors should conduct thorough research and consider their goals before investing, as USDtb is primarily a stability tool, rather than a yield-generating asset.
Closing thoughts
USDtb merges BlackRock's institutional credibility with blockchain technology's accessibility, creating a powerful bridge between traditional finance and decentralized systems. With its secure backing structure, utility during times of market volatility and an ambitious integration road map, USDtb is positioned to become a significant player in the digital dollar ecosystem.
Notably, the transition of USDtb issuance to Anchorage Digital Bank under the GENIUS framework represents a significant step toward full institutional integration. The stablecoin will retain its 24/7 transferability while now being supported by fiat and tokenized treasuries, bridging regulated finance and DeFi to an even greater extent.
#LearnWithBybit