Stablecoin issuer Ethena, in partnership with tokenization platform Securitize, has applied to include the USDtb stablecoin in Sky’s $1 billion tokenization contest
Ethena and Securitize shared their joint pitch for Sky’s Spark competition. They plan to use BUIDL, BlackRock’s tokenized U.S. treasuries fund, as the main backup asset.
BlackRock launched it in March 2024, making it the largest tokenized U.S. treasuries asset fund by market cap. Ethena and Securitize aim to leverage their participation in the Tokenization Grand Prix to introduce $1 billion worth of tokenized public stocks to Sky, formerly known as MakerDAO.
Sky-based loan rules Spark announced the challenge in June of this year. It gave issuers of real-world assets the chance to win up to $1 billion in cash. Spark told people about the game on August 12, 2024.
As well as the USDtb application, Ethena and Securitize have also put forward a plan for a swap service using USDe, Ethena’s other stablecoin. During Sky’s interest rate cycle, this will allow the community to handle moving assets between the two stablecoins.
Ethena Labs wrote on X :
“If crypto funding increases, Sky can reduce any USDtb holdings and increase its USDe allocation with zero friction and quicker than it could allocate to and from current RWA issuers,”.
Ethena brings in about $120 million a year for Sky, which is about 30% of the decentralized finance platform’s total income. Collateral backing only makes up 13% of that.
