Stablecoin Ethena Partners with Securitize for Sky’s Tokenization Contest
Stablecoin issuer Ethena has teamed up with tokenization platform Securitize to submit an application for including the USDtb stablecoin in Sky’s $1 billion tokenization contest.
Ethena (ENA) and Securitize recently announced their collaboration to participate in Sky’s Spark competition. The goal is to leverage BlackRock’s tokenized U.S. treasuries fund, BUIDL, as the primary reserve asset.
In March 2024, BlackRock introduced BUIDL, which is currently the largest tokenized U.S. treasuries asset fund by market cap. Ethena and Securitize aim to capitalize on this opportunity in the Tokenization Grand Prix, focusing on bringing $1 billion in tokenized public securities to Sky, formerly known as MakerDAO.
Sky’s Tokenization Contest
The lending protocol Spark, based on Sky, launched the competition earlier this year, offering real-world asset issuers the chance to win up to $1 billion in liquidity. Applications for the competition were opened on August 12, 2024.
Aside from the USDtb application, Ethena and Securitize have also proposed a swap facility involving Ethena’s other stablecoin, USDe. This initiative will allow the ecosystem to manage asset reallocation between the two stablecoins during Sky’s interest rate cycle.
“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 Labs shared on X.
Ethena contributes approximately $120 million to Sky’s annual revenue, representing nearly 30% of the decentralized finance platform’s total earnings, with collateral backing allocated at just 13%.
Overall, the partnership between Ethena and Securitize for Sky’s tokenization contest signifies a significant step forward in the cryptocurrency and blockchain industry, demonstrating the potential for innovation and collaboration in the space.
