Securitize Partners With Ethena Labs to Enable Atomic Swaps Between BUIDL and USDtb
Securitize, a leading blockchain technology company, has announced a groundbreaking new capability that allows users to swap between BlackRock’s tokenized U.S. Treasury fund, BUIDL, and Ethena’s USDtb stablecoin around the clock. This innovative development marks a significant step forward in bridging the gap between traditional finance and decentralized finance (DeFi), setting a new standard for accessing and composing tokenized assets on-chain.
Through a new liquidity fund smart contract, qualified users onboarded through Securitize now have the ability to perform atomic swaps between BUIDL and USDtb at any time of the day or night. This seamless integration opens up a world of possibilities for holders of BUIDL, providing them with unlimited access to various DeFi strategies that already incorporate USDtb. With a circulating supply of over $113 million, USDtb is primarily backed by BUIDL and offers a stable, composable, and yield-exposed dollar on-chain.
The integration was made possible through a collaboration between Securitize and Ethena (ENA) Labs, extending their partnership that began with the launch of the Converge blockchain earlier this year. This partnership enables asset holders to switch between programmable dollars and tokenized treasuries without the need for off-chain intermediaries, providing new trading options and liquidity for participants in both centralized finance (CeFi) and DeFi.
BUIDL’s growing role in the crypto infrastructure is further highlighted by its recent listing as collateral on platforms like Deribit and Crypto.com. The fund now commands a significant portion of the $7.3 billion tokenized U.S. Treasuries market, attracting institutional investors seeking regulated yield exposure.
While Ethena Labs initially held up to 90% of USDtb’s reserves in BUIDL, they have since ceased additional allocations. Nevertheless, USDtb remains closely linked to the liquidity and performance of the fund. The concentration of reserves in BUIDL does introduce systemic risks, as any redemption bottlenecks or regulatory scrutiny faced by BUIDL could potentially impact USDtb’s backing. However, with verified reserves and audited smart contracts, the system aims to strike a balance between transparency and capital efficiency.
Overall, the partnership between Securitize and Ethena Labs represents a significant milestone in the evolution of tokenized assets and DeFi integration. By enabling atomic swaps between BUIDL and USDtb, users now have greater flexibility and accessibility to a diverse range of financial opportunities in the crypto space.