rewrite this title and make it good for SEO Ethena and Securitize Submit Application for Spark’s $1B Tokenisation Competition – NFTgators

Quick take:

The two companies are proposing a swap facility using Ethena’s upcoming stablecoin USDtb and its other stablecoin USDe.

The swap facility aims to help the Sky ecosystem manage allocation between the two stablecoins in response to interest rate changes.

The USDtb stablecoin reserves are set to be invested in BlackRock’s BUIDL fund, which is tokenised by Securitize.

Ethena, the Ethereum-based synthetic dollar protocol and the issuer of the USDe stablecoin has submitted a joint application with Securitize for Spark’s $1 billion tokenisation competition. The companies said the application was “complementary” to Securitize’s previous application to the Grand Prix for BUIDL.

Spark, which runs a lending platform on the Sky ecosystem, formerly MakerDAO is $1 billion of liquidity to selected onboarding partners.

Ethena, which contributes $120 million in revenue to the Sky ecosystem, represents 30% of the total revenue.

Ethena and Securitize are proposing a swap facility using Ethena’s upcoming stablecoin USDtb and USDe. According to the application, the facility aims to help the Sky ecosystem manage allocation between the assets in response to interest rate changes.

Launched in July, the Spark Tokenization Grand Prix is aimed at onboarding up to $1 billion of tokenised assets, with the option for even greater expansion.

In Ethena’s and Securitize’s bid, the USDtb stablecoin reserves will be invested in BlackRock’s BUIDL fund, with BUIDL making up more than 90% of its initial backing. “USDtb will use Blackrock’s BUIDL as the primary reserve asset backing the token and is the only stablecoin offering in the market designed to be majority backed by BUIDL,” the companies wrote in their application.

Results of the bidding process will be submitted to the Sky governance for a vote by Sky token DAI (formerly Maker USDS) holders for discretionary and final decisions regarding the potential onboarding, SparkDAO said in an announcement in July.

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