The price of Ethena (ENA) has surged by more than 10% today, marking a significant rise following a bullish trend that began in mid-September. This upward momentum started when ENA broke free from a five-month-long descending channel, resulting in a price increase of nearly 100%.
The breakout has undoubtedly been a major factor driving the price rise, but there are also fundamental developments contributing to the positive sentiment surrounding the project.
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Securitize Partnership With Ethena for UStb
Securitize expressed pride in partnering with @ethena_labs for the upcoming launch of UStb, a new stablecoin intended to invest its reserves in @BlackRock’s tokenized U.S. Treasuries fund, BUIDL.
With over $522 million in assets, BUIDL stands as the largest tokenized U.S. Treasuries fund, providing UStb with a solid foundation. This collaboration signifies a pivotal moment in the evolution of tokenized finance, merging leading innovations in stablecoins and real-world asset tokenization.
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Ethena Labs Partnership With BlackRock
Ethena Labs shared their excitement about the introduction of UStb, which will be fully backed by @BlackRock BUIDL through a partnership with @Securitize. This stablecoin will operate as a separate fiat stablecoin product alongside USDe, offering users and exchange partners a new option with a differentiated risk profile.
Initially, there were concerns within the community regarding how USDe would perform in negative funding rate environments. However, despite bearish conditions over the last six months, Ethena’s USDe has managed to avoid any weeks of negative funding.
Furthermore, if necessary, USDe’s backing composition can dynamically adjust between basis positions and liquid stable products depending on interest rate conditions.
In scenarios of weak funding, USDe could potentially incorporate UStb, allowing Ethena to mitigate risks associated with negative funding rates.
Additionally, as Ethena expands into centralized exchange (CEX) collateral offerings beyond its current integrations with @Bybit_Official and @bitgetglobal, it can provide exchange partners with the choice of two distinct products for margin collateral.
Ethena Labs concluded by announcing that they would soon share updates on UStb
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