BlackRock BUILD Fund Bids for Allocation From Ethena's $45 Million Reserve Fund

BlackRock’s BUILD fund, a tokenized money market fund under the management of the asset management giant, is seeking investment from Ethena Labs' reserve fund. Ethena Labs, known for issuing the DeFi stablecoin USDe, has a reserve fund backed by $235 million in Tether (USDT). Recently, Ethena Labs opened applications for allocations of its $45.4 million reserve fund, aiming to diversify into real-world asset products that generate yield.

The BUILD fund, distributed by Securitize Markets, has pitched itself as a low-risk investment with a yield of about 4.88%, which accrues daily to holders. The fund primarily invests in cash, U.S. Treasury bills, notes, and other short-term government obligations, aiming for minimal credit risk.

BUILD has seen rapid growth, reaching over half a billion dollars in assets under management in just under four months, making it one of the fastest-growing funds of its kind. The fund's strategy aligns with Ethena's goal of holding treasury-backed products while leveraging the efficiencies of blockchain-based reserves.

Other applicants for Ethena's reserve fund allocation include Steakhouse Financial, which proposed a USDC lending vault with a variable yield between 0.91% and 31.19%, and Mountain Protocol, which has expressed interest but has yet to submit a formal application.

These developments reflect Ethena Labs' effort to enhance the capital efficiency of its ecosystem, potentially benefiting holders of its USDe and ENA tokens.

source: https://decrypt.co/241414/blackrock-buidl-fund-bids-for-allocation-from-ethenas-45-million-reserve-fund