Last Thursday (10), Ethena revealed the investments selected by its risk committee to allocate its real-world asset reserve fund (RWA).
Ethena’s risk committee initially received 25 nominations, but ultimately selected four assets that met its criteria.
Ethena Selects 4 Assets for Reserve Allocation
Selected assets include:
BlackRock USD Institutional Digital Liquidity Fund (BUIDL)
USDS stablecoin da Sky (Maker)
Superstate Short Duration U.S. Government Bond Fund (USTB) and
USDM stablecoin do Mountain Protocol
According to the risk committee, these assets meet important criteria such as product maturity, liquidity, redemption time, and several other metrics. Currently, the total value of assets in the reserve fund exceeds $46.6 million.
Read more: What is a stablecoin? A beginner’s guide
Ethena Reserve Estate. Source: DeBank
Among them, Blackrock’s BUIDL holds the largest stake at 40%, followed by Sky’s USDS at 29%. Mountain’s USDM and Superstate’s USTB have stakes of 16.5% and 14.5%, respectively.
“BUIDL will enable USDC subscriptions and redemptions. There is currently $75 million in the redemption fund. Excellent redemption timing. Current AUM is high at $500 million,” Ethena Lab Research commented.
Additionally, on September 26, 2024, Ethena (ENA) also announced the launch of a new stablecoin product called UStb, developed in partnership with BlackRock’s real-world asset tokenization platform, Securitize.
However, in response to these announcements, the price of ENA has not shown any significant movement. ENA is still trading at around $0.27. According to CoinMarketCap, ENA’s trading volume remains stable at an average of $80 million, with no relevant fluctuations.
In 2024, the price of ENA fell 86% from a high of $1.5 to a low of $0.2. Although it recovered 100% in the past month, ENA remains well below its all-time high.
RWA market share continues to grow in 2024
Data from IntoTheBlock shows that RWA protocols now account for 3.69% of the total value locked (TVL) in the DeFi space. This share has steadily increased from a low of 1.77% in April.
Total RWA TVL. Source: IntoTheBlock
According to DeFiLlama, the TVL of RWA protocols in the market has now surpassed $6.5 billion.
“This steady uptrend shows the increasing integration of real-world assets within the DeFi ecosystem,” IntoTheBlock commented.
The RWA sector is increasingly attracting the attention of traditional financial institutions (TradFi). Recently, Visa introduced a new platform to help banks verify tokenized assets and smart contracts.
The post Ethena Selects Four Assets for Its RWA Reserve Fund appeared first on BeInCrypto.
