Ethena said its yield-generating “synthetic dollar” token will be integrated into BlackRock’s (BLK) Aladdin risk management platform, as the crypto protocol deepens its relationships with traditional financial firms.
Monday’s announcement sent Ethena’s governance token ENA (ENA) up about 8% as investors welcomed another high-profile institutional partnership.
Aladdin is BlackRock’s portfolio construction and risk management platform used by banks, insurers, pension funds and asset managers overseeing more than $20 trillion in combined assets.
Ethena also said that BlackRock’s tokenized money market fund, BUIDL, would serve as the primary reserve asset for an upcoming white-label product.
The companies also unveiled a $100 million liquidity facility that will allow eligible holders of BlackRock’s tokenized treasury fund, BUIDL, to exchange their holdings for USDC, USDtb, and other supported stablecoins outside of traditional market hours, and convert those assets back into BUIDL.
“We believe that stablecoins and real-world tokenized assets are inextricably linked,” Robert Mitchnick, BlackRock’s head of digital assets, said in a statement. “This liquidity facility enables a level of frictionless interoperability that is at the heart of the unique utility that tokenization of Treasury funds makes possible.”
