Ethena to invest $46m reserve fund in tokenized assets

Decentralized finance protocol Ethena will allocate $46 million of its Reserve Fund in varied tokenized real-world property.
Ethena (ENA) announced the choice on Oct. 10, revealing the fund’s allocations, which embrace BlackRock’s tokenized fund BlackRock USD Institutional Digital Liquidity, Mountain Protocol’s yield-bearing stablecoin, the Superstate Quick Period U.S. Authorities Securities Fund, and Sky’s new stablecoin USDS.
In accordance with Ethena, the 4 property have been chosen primarily based on their potential within the real-world property market. Standards for choice included product maturity, property underneath administration or complete worth locked, liquidity, redemption time, authorized design, and risk-adjusted yield.
Ethena’s Reserve Fund RWA allocations
The selection of BlackRock’s fund, Superstate’s authorities debt fund, Mountain Protocol’s stablecoin, and Sky’s stablecoin got here after cautious consideration by Ethena’s threat committee. The five-member group with voting rights consists of people from Gauntlet, Block Analitica, Steakhouse, Llama Danger, and Blockworks Advisory.
Ethena had introduced plans for the real-world asset-backed reserve fund in July, with the proposal attracting 25 issuers from throughout the market. The committee chosen these 4 from the pool of candidates.
Within the particulars shared in a blog post, Ethena has outlined the next allocations: 40%, or roughly $18 million, into BlackRock’s fund; 29%, or roughly $13 million, into Sky’s stablecoin; 16.5%, or $8 million, into Mountain Protocol’s stablecoin; and 14.5%, or $7 million, into Superstate’s tokenized U.S. authorities debt fund.
As soon as the committee finalizes the allocations, they are going to be answerable for monitoring the property and offering common updates.