skip to Main Content
bitcoin
Bitcoin (BTC) $ 96,179.77 2.52%
ethereum
Ethereum (ETH) $ 3,301.76 4.90%
tether
Tether (USDT) $ 1.00 0.19%
solana
Solana (SOL) $ 245.11 5.94%
bnb
BNB (BNB) $ 645.74 3.89%
xrp
XRP (XRP) $ 1.32 15.63%
dogecoin
Dogecoin (DOGE) $ 0.403687 11.52%
usd-coin
USDC (USDC) $ 0.999032 0.12%
cardano
Cardano (ADA) $ 0.954242 14.15%
staked-ether
Lido Staked Ether (STETH) $ 3,299.74 4.97%

BlackRock’s $500M Tokenized Fund Pitches for Ethena’s RWA Investment Plan

  • Ethena shared plans to allocate a part of its $235 million USDT stablecoin collateral and $45 million surplus reserve in yield-generating real-world asset (RWA) offerings.

  • BlackRock’s BUIDL fund pitched for a $34 million allocation, while Steakhouse Financial applied with a lending vault on Morpho Blue.

  • SEC's Gensler Was 'Consistent' Despite Being 'Fried Like a Chicken' Before the Senate: Kevin O'Leary

    00:59

    SEC’s Gensler Was ‘Consistent’ Despite Being ‘Fried Like a Chicken’ Before the Senate: Kevin O’Leary

  • Bitcion Mining Is 'Real Estate' Play: Kevin O'Leary

    00:59

    Bitcion Mining Is ‘Real Estate’ Play: Kevin O’Leary

  • Kevin O'Leary on Institutional Demand for Spot ETH ETFs

    00:58

    Kevin O’Leary on Institutional Demand for Spot ETH ETFs

  • What's Kevin O'Leary's Best Investment Ever?

    31:31

    What’s Kevin O’Leary’s Best Investment Ever?

  • Ethena, the protocol behind the $3.4 billion yield-generating “synthetic dollar” token USDe, is planning to invest a part of its reserves in tokenized real-world assets (RWA), and BlackRock’s BUIDL fund is among the first applicants to throw its hat in the ring.

    The protocol laid out plans in a July 16 governance post to allocate a part of its $235 million USDT holdings, roughly 7% of collateral assets, and its $45 million surplus buffer called the Reserve Fund to RWA products to earn a yield. Ethena’s token provides yield to investors by buying spot bitcoin {{BTC}} and ether {{ETH}} and paralelly selling, or shorting, perpetual swaps of the assets on crypto exchanges, harvesting the funding rate.

    BlackRock’s BUIDL, a money market fund represented by an Ethereum-based token, seeks a $34 million allocation from Ethena’s $45 million Reserve Fund, according to a Monday post by Jonathan Espinosa from tokenization platform Securitize, BUIDL’s distribution partner.

    Steakhouse Financial also applied for a Reserve Fund allocation on Monday with a USDC lending vault on DeFi platform Morpho Blue, which is overcollateralized by wrapped bitcoin (wBTC), wrapped staked ether (wstETH) and Backed’s tokenized Treasury Bills product (bIB01).

    Mountain Protocol, issuer of the USDM yield-bearing stablecoin, also signaled interest in applying, with founder Michael Carrica replying last week to the governance post that the protocol “will be presenting a proposal in the coming days.”

    All prospective applicants will need to post their proposal publicly on the governance forum, Guy Young, founder of Ethena Labs, the developer company behind the protocol, said in an email.

    Ethena’s open competition is the latest example of tokenized RWAs getting increasingly used in the crypto-native, decentralized finance (DeFi) world. Most recently, DeFi lender MakerDAO announced plans to invest $1 billion of backing assets of the DAI stablecoin in tokenized Treasury products, while ArbitrumDAO, an ecosystem development organization of Ethereum layer-2 Arbitrum, finalized a similar contest to allocate the equivalent of 35 million of ARB tokens in tokenized offerings.

    UPDATE (July 23, 21:35 UTC): Clarifies that the BlackRock, Steakhouse proposals are for Ethena’s Reserve Fund allocation.

    Edited by Stephen Alpher.

    Disclosure

    Please note that our

    privacy policy,

    terms of use,

    cookies,

    and

    do not sell my personal information

    has been updated

    .

    CoinDesk is an

    award-winning

    media outlet that covers the cryptocurrency industry. Its journalists abide by a

    strict set of editorial policies.

    In November 2023

    , CoinDesk was acquired

    by the Bullish group, owner of

    Bullish,

    a regulated, digital assets exchange. The Bullish group is majority-owned by

    Block.one; both companies have

    interests

    in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin.

    CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Krisztian  Sandor
    Loading data ...
    Comparison
    View chart compare
    View table compare
    Back To Top