- BaFin gives USDe token holders until August 6 to redeem tokens under Ethena GmbH’s plan.
- Ethena GmbH exits EU market after MiCA compliance failure and regulatory wind-down.
- Over 5.6B USDe tokens remain in circulation, mostly outside EU regulatory oversight.
The German Federal Financial Supervisory Authority (BaFin) has approved a 42-day redemption plan for USDe token holders linked to Ethena GmbH. The move, announced on June 25, 2025, marks the end of a regulatory standoff that began in March after BaFin blocked USDe distribution in the European Union and EEA.
According to the announcement, the redemption process began at 12:00 CEST on June 25 and will remain open until 23:59 CET on August 6. During this window, EU and EEA-based USDe holders can file claims directly with Ethena GmbH. BaFin emphasized that redemption claims submitted after this period must go through Ethena’s offshore entity, Ethena (BVI) Ltd, which falls outside EU regulatory jurisdiction.
A BaFin-appointed representative will supervise the redemption process. Claimants must pass identity verification and KYC/AML checks before receiving payouts. The confirmation email from Ethena GmbH will include wallet instructions for token transfer. Once the tokens are received, payouts in USDC will be issued within 48 hours.
Regulatory Wind-Down Follows MiCA Compliance Failure
Ethena GmbH had originally applied for MiCAR authorization on July 29, 2024, but BaFin rejected the application earlier this year. The rejection followed enforcement action in March, when BaFin accused the company of offering unregistered securities through its yield-generating token sUSDe. The regulator subsequently froze reserves, shut down the company’s platform, and barred it from onboarding new users.
This redemption plan was triggered following the official withdrawal of the Ethena GmbH application to operate under the Markets in Crypto-Assets Regulation (MiCA). BaFin followed this with an order to wind down on a structured basis as Ethena GmbH withdrew from EU-regulated activities. The wind-down would only affect Ethena GmbH and not impact the BVI-based Ethena entity that can still provide redemptions beyond the EEA.
The final step is the 42-day procedure, which allows the affected EU and EEA users to reclaim their USDe tokens with the protections of MiCA. After the deadline, the only available mechanisms will remain offshore, which do not have the regulatory protection that can be found in the EU.
Also Read: Ethena Labs Exits Germany After BaFin Blocks USDe Stablecoin Operations
Uncertain Future for Ethena in European Markets
Ethena Labs confirmed that once the redemption plan concludes, the company will have resolved all regulatory issues related to its German subsidiary. However, the firm has not disclosed whether it intends to return to the EU market in the future.
Currently, more than 5.65 billion USDe tokens are still circulating in the global market several of which were released before MiCA was enacted. Nevertheless, as Ethena (BVI) Ltd’s issuance rises, there are still concerns regarding jurisdiction gaps in crypto regulation.
Also Read: Ethena Debuts on TON Blockchain, Stablecoin Savings Reach 1 Billion Users
