Ethena and Securitize propose USDtb for Spark’s $1b Tokenization Grand Prix

• The proposal by Ethena and Securitize will be evaluated for suitability by a panel.
• If approved the proposal will enhance liquidity and stability within the Sky ecosystem.
• USDtb, backed by BlackRock’s BUIDL, offers a stable, RWA-based risk profile.

Ethena Labs and tokenization platform Securitize have submitted a joint proposal to feature Ethena’s new stablecoin, USDtb, in Spark’s $1 billion Tokenization Grand Prix.

The $1B Tokenization Grand Prix competition aims to onboard real-world assets (RWAs) into DeFi by offering liquidity to selected participants, further expanding the scope of tokenized assets in decentralized ecosystems.

The proposal submitted by Ethena and Securitize

At the heart of Ethena’s proposal is a unique swap facility between USDtb and its synthetic stablecoin, USDe.

This innovation would allow participants in the Sky ecosystem—formerly MakerDAO—to dynamically manage liquidity and risk based on prevailing market conditions and interest rate trends. The ability to reallocate between these stablecoins is designed to enhance financial flexibility and stability within the ecosystem.

Ethena’s contribution to the Sky ecosystem is significant, generating nearly $120 million in annual revenue. The integration of USDtb could further bolster USDe’s performance, particularly during challenging funding conditions, by dynamically adjusting its backing composition.

USDtb, scheduled to launch next week, 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 robust foundation for USDtb, offering an alternative risk profile compared to USDe.

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

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