The decentralized finance landscape is witnessing notable developments as Ethena Labs and Ripple make significant strides in expanding their ecosystems. Ethena Labs’ launch of its BlackRock-backed USDtb stablecoin has garnered $65.4 million in total value locked within its first day, while renewed interest in XRP and anticipation for Ripple’s upcoming RLUSD stablecoin have driven a 250% surge in user activity for Xaman, a leading self-custodial wallet in the XRP Ledger ecosystem.
Ethena Labs’ USDtb Stablecoin Launch Sees $65.4 Million Locked in First Day
Ethena Labs officially launched its BlackRock-backed stablecoin, USDtb, on Dec. 16, 2024, amassing an impressive $65.4 million in total value locked (TVL) within its first 24 hours.
USDtb is positioned as a cash or cash-equivalent backed stablecoin with a 1:1 reserve ratio, offering holders both stability and liquidity similar to established competitors like Tether (USDT) and USD Coin (USDC). Ethena Labs introduced USDtb as a strategic tool to help users of its flagship synthetic dollar product, USDe, navigate bearish markets.
The firm noted in its Dec. 16 announcement that USDtb would allow Ethena to ”close hedging positions underlying USDe” and reallocate the backing assets to USDtb. This move is expected to further reduce risks associated with USDe during challenging market environments.
USDtb’s underlying assets are primarily allocated to BlackRock’s USD Institutional Digital Liquidity Fund, in partnership with blockchain tokenization leader Securitize. BlackRock’s involvement signifies growing institutional adoption of tokenized assets within the DeFi ecosystem.
USDtb’s launch has already received praise from influential voices in the blockchain space. José Maria Macedo, co-founder of Delphi Labs, predicted USDtb will become the largest tokenized treasury product within a month.
Meanwhile, Seraphim Czecker, Ethena’s head of growth, emphasized the product’s scalability potential, suggesting USDtb could grow to $100 billion. According to Czecker, Ethena’s ability to allocate capital efficiently, even in bearish conditions, enables the stablecoin to offer yield stability through an ”APY floor” aligned with US Treasury Bill rates.
USDtb’s reserves are composed of 90% US Treasury Bill-backed funds and 10% liquid stablecoins like USDC. The latter ensures USDtb maintains sufficient liquidity during weekends and other periods when Treasury markets are inactive.
Ethena Labs’ meticulous approach to security has further bolstered confidence in the new stablecoin. The core smart contracts underwent three separate audits by leading security firms — Pashov, Quantstamp, and Cyfrin — in October, with no high or medium-level vulnerabilities reported.
USDtb’s approval by Ethena’s Risk Committee in September paved the way for its official rollout, with final adjustments completed earlier this month.
Ethena’s Growing Dominance in the Stablecoin Market
USDtb’s launch comes on the heels of Ethena Labs’ success with USDe, which recently overtook MakerDAO’s Dai (DAI) to become the third-largest stablecoin in the market. However, while USDe boasts a market capitalization of $5.87 billion, it still lags behind the dominant forces of USDT and USDC, which hold market caps of $140.6 billion and $42.1 billion, respectively, according to DefiLlama data.
The stablecoin sector has demonstrated remarkable resilience and growth. The total stablecoin market capitalization surpassed $200 billion this year, and leading crypto asset manager Bitwise predicts it will double to $400 billion by 2025. Bitwise’s forecast hinges on the anticipated approval of US stablecoin legislation, which could provide a clear regulatory framework and further institutional adoption.
The launch of USDtb is part of the growing intersection between traditional finance (TradFi) and DeFi. BlackRock’s significant involvement through its Institutional Digital Liquidity Fund exemplifies how major financial players are increasingly participating in the tokenization of real-world assets, a trend widely regarded as a cornerstone for DeFi’s long-term growth.
As Ethena Labs solidifies its position with both USDe and USDtb, the firm continues to challenge traditional stablecoin incumbents by offering innovative risk management and real-world asset backing. The immediate traction USDtb has gained also signals rising investor interest in yield-bearing stablecoins that combine institutional-grade security with DeFi-level accessibility.
Overall, Ethena Labs’ rollout of USDtb represents more than just another stablecoin launch. It marks a pivotal moment for stablecoin innovation, demonstrating the potential of tokenized real-world assets to enhance liquidity, risk management, and scalability in DeFi. With institutional backing from BlackRock, rigorous audits, and an ambitious growth outlook, USDtb is poised to capture significant market share in the months ahead.
The success of USDtb’s launch also reflects broader trends shaping the stablecoin sector, as institutional and retail investors increasingly seek stable, liquid, and yield-generating digital assets amid evolving market dynamics. If USDtb meets its projected growth targets, it could cement Ethena Labs’ status as a major player in the stablecoin landscape.
XRP Surge and Ripple’s Stablecoin Launch Drive 250% User Growth for Xaman Wallet
In other stablecoin news, renewed excitement surrounding XRP and the anticipated launch of Ripple’s USD stablecoin (RLUSD) has sparked a massive resurgence in user activity for Xaman, a self-custodial wallet designed for the XRP Ledger (XRPL) ecosystem. Weekly active users on Xaman surged by 250% since summer, with the platform now exceeding 212,000 active users, according to Robert Kiuru, Xaman’s Chief Operating Officer.
Xaman’s remarkable spike in activity coincides with XRP’s recent price rally and renewed investor optimism. The number of active weekly users grew from a summer low of 60,000 to over 212,000 in December. This jump, which includes 80,000 newly signed-up users, reflects XRP’s rising volatility and its brief return to the position of the third-largest cryptocurrency by market capitalization on Dec. 2.
Kiuru emphasized that XRP’s bullish movement accounted for 90% of the recent user activity, with much of the momentum also driven by growing interest in Ripple’s RLUSD stablecoin launch.
Ripple’s RLUSD stablecoin is poised to further strengthen the XRPL ecosystem, potentially driving increased adoption for wallets like Xaman. RLUSD, a USD-pegged stablecoin, aims to provide users with stability in volatile markets while further expanding Ripple’s role in the digital asset economy.
Industry experts, such as Axelar co-founder Sergey Gorbunov, have suggested that RLUSD could significantly boost demand for XRP as the stablecoin integrates into XRPL-based projects, bringing liquidity and utility to the broader ecosystem.
Rebranded from Xumm in May 2023, Xaman remains a core player within the XRPL ecosystem. Initially funded by Ripple’s investment arm Xpring (now Ripplex), Xaman was created by prominent Ripple developer Wietse Wind, known for building XRP-focused applications such as XRParrot and XRPTipBot. Ripple’s backing of XRPL Labs in 2019 and 2020 established Xaman as one of the first projects to receive direct support from Ripple.
Kiuru highlighted Xaman’s strategic importance, noting that “almost every XRPL project integrates with Xaman via ‘Sign in with Xumm,’ offering secure, seamless transactions.” The wallet has emerged as a gateway for users to interact with XRPL projects, bridging the gap between developers and end-users.
While XRPL itself doesn’t natively support smart contracts, Xaman has extended its capabilities through the Xahau Network. Xahau, a blockchain forked from XRPL, enables smart contracts using Hooks — a lightweight functionality designed for developers.
“Smart contracts on Xahau use Hooks, developed by XRPL Labs,” Kiuru explained. The integration of Hooks allows Xaman users to access smart contract functionalities, enhancing the wallet’s utility for developers and end-users seeking advanced on-chain features.
Xaman also facilitates on- and off-ramps for fiat through integrated platforms like Uphold’s Topper, providing users with greater flexibility when moving assets between XRPL and traditional finance.
Xaman’s Evolution and Ripple’s Continued Support
Xaman’s journey signals the maturation of the XRPL ecosystem, from Ripple’s early investments to its current role as a self-custodial wallet driving user engagement. Ripple’s strategic backing of XRPL Labs in 2019-2020 marked a key milestone, helping establish Xaman as a trusted platform for XRP holders and developers.
Ripple’s vision of building a robust ecosystem around the XRPL is now materializing with initiatives like RLUSD and platforms like Xaman. These efforts aim to combine decentralized finance (DeFi) capabilities with enterprise-grade solutions, positioning the XRPL as a competitive force in the blockchain industry.
The broader XRP market rally has also contributed to growing optimism within the XRPL community. XRP’s recent price movements have reignited investor confidence, further amplified by Ripple’s legal victories and ongoing developments. The upcoming launch of RLUSD is expected to enhance liquidity and utility within the XRPL ecosystem, benefiting wallets like Xaman that play a pivotal role in user adoption.
This article was originally Posted on Coinpaper.com
