Ethena Labs has introduced a new stablecoin, USDtb, backed by BlackRock’s USD Institutional Digital Liquidity Fund. USDtb operates similarly to other popular fiat-backed stablecoins like USD Coin ( USDC ) and Tether ( USDT ), with reserves held in cash or cash-equivalent assets at a 1:1 ratio. Unlike most stablecoins, USDtb distinguishes itself by allocating 90% of its reserves to BlackRock’s BUIDL fund. This tokenized money market fund primarily invests in short-term U.S. Treasury bills, cash, and repurchase agreements. This is the highest BUIDL allocation of any stablecoin, allowing USDtb to scale more effectively and providing a high degree of stability, according to Ethena ( ENA ). The stablecoin is being launched in partnership with Securitize , a leader in tokenization of real-world assets. USDtb is positioned as a more traditional stablecoin option, with a completely separate risk profile compared to Ethena’s flagship token, USDe ( USDe ), which uses a derivative-based strategy to maintain its peg to the U.S. dollar. You might also like: MicroStrategy registers new $1.5b Bitcoin buy Ethena’s financial ecosystem The introduction of USDtb is part of Ethena’s broader strategy to bolster the resilience of its ecosystem, particularly during volatile market conditions. While USDe generates yield by shorting assets like Bitcoin ( BTC ), Ether ( ETH ), and Solana ( SOL ), it is susceptible to underperformance during market downturns and negative funding rates. To mitigate these risks, Ethena’s Risk Committee has approved USDtb as a backup asset for USDe, allowing the platform to reallocate reserves when necessary. USDtb is also expected to serve as an alternative collateral option for margin trading on centralized exchanges, further broadening its utility. Today we are launching our new stablecoin product, USDtb, backed by @BlackRock 's BUIDL Fund in partnership with @Securitize Read below for full details👇 pic.twitter.com/mSf3mWv3oF — Ethena Labs (@ethena_labs) December 16, 2024 Ethena has partnered with custodians such as Copper, Zodia Custody, Komainu, and Coinbase Institutional to secure USDtb’s reserves, according to the company. Ethena also submitted an application for USDtb to be included in Sky’s $1 billion Tokenization Grand Prix, which aims to fund tokenized real-world asset projects. The launch of USDtb follows a series of successful audits conducted by leading firms, including Pashov, Quantstamp, and Cyfrin, ensuring the token’s security and reliability. You might also like: Major accumulations of AVAX, XRP, and CATZILLA signal a potential 150x breakout
MicroStrategy has done it again. Between December 9 and December 15, 2024, the company purchased 15,350 bitcoins for $1.5 billion in cash. This brings their total Bitcoin holdings to a jaw-dropping 439,000 BTC, now worth billions more in market value. The acquisition was funded through the sale of 3.88 million shares of its class A common stock. This latest Bitcoin haul comes at an average purchase price of $100,386 per coin, fees included. Overall, MicroStrategy has spent $27.1 billion to build its BTC reserves, which now average out at $61,725 per coin. How MicroStrategy funds its Bitcoin obsession The funding for these massive Bitcoin purchases comes from an October 30 sales agreement with many heavy-hitter financial institutions, including TD Securities, Barclays, and Cantor Fitzgerald. The agreement allows MicroStrategy to issue and sell up to $21 billion worth of its class A common stock over time. By December 15, the company had already sold shares worth $1.54 billion, leaving $7.65 billion in available shares for future sales. These sales have proven to be a reliable pipeline for fueling MicroStrategy’s Bitcoin buying spree. It’s actually a calculated bet. MicroStrategy’s leadership, including co-founder and executive chairman Michael Saylor, views Bitcoin as the ultimate reserve asset, superior to cash or traditional investments. The company’s commitment to Bitcoin is unmatched, and its aggressive stock issuance strategy is a reflection of its unrelenting belief in the crypto’s long-term value. The company’s decision to execute a 10-for-1 stock split earlier this year also plays into this strategy. By increasing accessibility for retail investors, MicroStrategy made its shares more liquid and, by extension, enhanced its ability to raise capital for Bitcoin acquisitions. The split, adjusted all historical share counts and equity award figures, aligning them with the new structure. BTC yield: A key metric in MicroStrategy’s strategy MicroStrategy’s BTC yield is a metric that sets it apart from other corporate Bitcoin holders. The company uses this key performance indicator (KPI) to measure the percentage change in Bitcoin holdings relative to its assumed diluted shares outstanding. From October 1 to December 15, MicroStrategy’s BTC yield climbed by 46.4%. The year-to-date figure is a stunning 72.4%. What does this number really mean? In simple terms, it tracks how much Bitcoin the company acquires for every share issued, showcasing the efficiency of its strategy. Though BTC yield isn’t perfect. It doesn’t consider liabilities like debt, nor does it account for the trading price of MicroStrategy’s stock. Still, it’s a creative way for the company to evaluate its performance and give Bitcoin-focused investors something unique to consider. The company acknowledges that BTC yield can fluctuate based on external factors. For instance, the redemption of 6.125% senior secured notes earlier this year boosted yield figures by reducing liabilities. On the flip side, future redemptions or stock sales could drive the metric down. Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap
The crypto market is buzzing with anticipation as traders look towards the potential for a 2024 Santa Claus rally, a historical trend that suggests significant gains might be on the
Bitget announced they obtained a Bitcoin Service Provider license from El Salvador’s Central Reserve Bank. The license allows Bitget to facilitate Bitcoin-to-fiat exchanges, Bitcoin ( BTC ) payments, and custody services in the country. With the BSP license, Bitget can now offer Bitcoin-focused services such as buying, selling, storing, and transferring BTC. This milestone is part of Bitget’s broader strategy to strengthen its regulatory standing and expand globally. The company is also pursuing a Digital Assets Service Provider license from El Salvador’s National Commission of Digital Assets. This additional license would enable Bitget to offer services for other cryptocurrencies beyond Bitcoin in El Salvador . El Salvador has emerged as a global hub for cryptocurrency adoption since declaring Bitcoin a legal tender in 2021. The country’s pro-Bitcoin policies provide an entry point for companies like Bitget to expand in Latin America, a region where crypto is being used for remittances, financial inclusion, and as a hedge against volatile fiat currencies. You might also like: Here’s why Ondo Finance crypto could soar 26% soon Bitget’s recent moves Bitget has also obtained Virtual Asset Service Provider licenses in Poland and Lithuania, facilitating its operations in European markets. The exchange recently re-entered the UK market through a partnership with Archax to comply with the Financial Conduct Authority’s promotional guidelines. To enhance its presence in Latin America, Bitget plans to establish a dedicated team in El Salvador. This initiative aims to improve service delivery and foster stronger relationships with local users. You might also like: UK to ban public crypto offers in incisive new regulatory climate
Bitget announced they obtained a Bitcoin Service Provider license from El Salvador’s Central Reserve Bank. The license allows Bitget to facilitate Bitcoin-to-fiat exchanges, Bitcoin (BTC) payments, and custody services in the country. With the BSP license, Bitget can now offer…
On December 16, market analysis revealed a positive trend among **Bitcoin**-related **US stocks**, with several key players experiencing notable gains. **Coinbase** (COIN.O) saw a substantial increase of nearly **4%**, reflecting
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There’s potential for a 2024 Santa Claus rally across the crypto markets. Historical trends, market factors and this year’s bull run could lead to significant gains.
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Bitcoin’s price held steady at a dazzling $105,080 on Monday, Dec. 16, 2024, with a daily trading volume of $90.85 billion and a market cap hitting $2.05 trillion, while the leading crypto asset by market cap danced between $102,593 and $106,533 throughout the last day. Bitcoin Bitcoin keeps riding the wave of a grand bullish