- Ethena raises $100M to launch iUSDe for financial institutions.
- USDe’s market cap hits $6B, securing its place in the top three.
- Ethena partners with WFLI to expand DeFi offerings for TradFi.
Ethena, the developer behind the synthetic stablecoin USDe, has raised $100 million to support the launch of a new token,iUSDe , aimed at traditional financial institutions (TradFi).
Ethena Raises Funds to Launch iUSDe
USDe Stablecoin issuer, Ethena has raised $100 million to fund the launch of iUSDe. The funding round, which closed in December, saw participation from major investors such as Franklin Templeton and Fidelity Investments’ F-Prime Capital. Ethena plans to use this capital to develop a blockchain and introduce iUSDe, a token designed for regulated financial entities.
Ethena preparing to launch iUSDe. The new token will feature a “simple wrapper contract” that places transfer restrictions on it, making it suitable for use by regulated financial institutions. The project plans to roll out iUSDe in the first quarter of 2025 and aims to gain distribution partners within TradFi.
Price Action on ENA and USDe
The $100 million raised from the private sale of ENA tokens will be used for the continued development of Ethena’s blockchain and the introduction of iUSDe. The sale saw ENA tokens offered at an average price of $0.40, and the token briefly surged to a high of $1.30 in mid-December before a decline that saw significant loss in value.
As Ethena continues to push forward with its blockchain goals, the market remains on the lookout for how its offerings impact TradFi institutions.
USDe recently surged in popularity, reaching approximately $6 billion in market cap which positions it as the third-largest stablecoin. It now ranks behind Tether’s USDT and Circle’s USDC, which have market caps of $142 billion and $57 billion respectively.
The stablecoin distinguishes itself by being synthetic, meaning it isn’t backed 1:1 by fiat assets but instead uses a combination of stablecoins and futures positions to maintain its peg.
Institutional Interest and Strategic Partnerships
Ethena has made headlines with its synthetic dollar which attracts investors and advisors such as Arthur Hayes of Maelstrom. Hayes has raised his fund’s exposure to USDe, which he views as a potential safe haven during periods of market volatility. However, the company now seeks to develop a version of USDe designed specifically for the TradFi sector.
Additionally, Ethena has entered into a strategic partnership with World Liberty Financial (WFLI), a decentralized finance project backed by former U.S. President Donald Trump. The collaboration will see the integration of sUSDe, a staked version of USDe, with WFLI’s Aave instance. This will allow users to earn rewards in both sUSDe and WFLI’s native token.
Ethena’s vision to integrate with traditional financial markets marks a significant step in bridging the gap between decentralized finance and established financial systems. The company remains focused on expanding its offerings and building a robust infrastructure that meets regulatory standards.