🌎 Ethena Allocates $46M to Tokenized Real-World Assets

Decentralized finance protocol Ethena is set to allocate $46 million of its Reserve Fund into various tokenized real-world assets.

Ethena’s Strategic Fund Allocation

On October 10, Ethena announced the allocation of its Reserve Fund. The assets selected include BlackRock’s tokenized fund, BlackRock USD Institutional Digital Liquidity, Mountain Protocol’s yield-bearing stablecoin, the Superstate Short Duration U.S. Government Securities Fund, and Sky’s new stablecoin USDS.

According to Ethena, these assets were chosen based on their potential within the real-world assets market. The criteria for selection included product maturity, assets under management (AUM) or total value locked (TVL), liquidity, redemption time, legal design, and risk-adjusted yield.

Assets and Allocation Breakdown

The allocation is as follows:

BlackRock’s Fund: 40% (approximately $18 million)
Sky’s Stablecoin: 29% (roughly $13 million)
Mountain Protocol’s Stablecoin: 16.5% (around $8 million)
Superstate’s U.S. Government Debt Fund: 14.5% (about $7 million)

Ethena’s risk committee, which includes members from Gauntlet, Block Analitica, Steakhouse, Llama Risk, and Blockworks Advisory, carefully considered these selections. The committee, consisting of five members with voting rights, reviewed 25 issuers before making the final decision.

Monitoring and Updates

Once the allocations are finalized, the committee will be responsible for monitoring the assets and providing regular updates to ensure transparency and ongoing assessment of the fund’s performance.