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- Ethena secures a $20M investment from M2 Capital, strengthening its position in the synthetic dollar market.
- M2 integrates Ethena’s synthetic dollar products into its regulated wealth management offerings.
- Demand for USDe and sUSDe drives Ethena’s TVL to nearly $15B, attracting more institutional interest.
Ethena has entered into a 20-million investment deal with M2 capital, this being a major milestone in its expansion. The capital will assist the protocol to establish a stronger foothold in the synthetic dollar market, as it approaches 15 billion in total value locked (TVL). This capital also demonstrates increased institutional trust in the Ethena model.
M2 Capital, the investment division of UAE-based M2 Holdings, declared the purchase of a 20 million-dollar share in the Ethena ENA token. This is only one year after the launch of Ethena in 2024. The transaction will also involve incorporating synthetic dollar products offered by Ethena into those provided by M2 Global Wealth Limited as a regulated gateway that clients can use to become exposed to decentralized finance (DeFi) assets.
Ethena’s Synthetic Dollars Fuel DeFi Growth and Stability
USDe and sUSDe are synthetic dollar products by Ethena, which have grown quickly. USDe is a stable asset in crypto, and sUSDe is its income-generating equivalent. The products operate in a delta-neutral hedging approach in order to pair off risk and earn yield. This move has already paid off, as M2 Capital boasts projected returns of 14 percent this year.
As per DefiLlama, Ethena is quickly gaining popularity, having reached a TVL of $15 billion. This expansion is influenced by the high demand of its products, to be specific, the synthetic dollar products. USDe and sUSDe assets are of significant interest to the operational agencies, a strategy that supports the competitive advantage of the protocol in the DeFi sector.
Source: Chainwire
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This investment is included in the overall plan of M2 to support innovative DeFi investments. M2 has secured projects such as the Sui Foundation and Sui Group Holdings listed on Nasdaq. Kim Wong, the Managing Director at M2 Holdings, noted the strategic importance of such a move. He emphasized the prospects of the unique approach used by Ethena in the synthetic dollar market.
YZi Labs and M2 Capital Fuel Ethena’s Expansion with Strategic Investments
Other institutional investors have also been attracted to Ethena. YZi Labs, which is associated with Binance founder Changpeng Zhao, had only a week prior to the M2 investment raised its stake in the protocol. This investment will make Ethena more popular at the BNB Chain and create new products.
According to the data provided by DefiLlama, Ethena has performed well in terms of financial performance. As of last year, the protocol collected fees of $666.82 million. In the case of Ethena, the fees are 137.67 million in Q3 2025. Despite the Q3 earnings being less than they were in the second quarter, the protocol continues to generate high fees due to the high average interest of users.
This investment of $20 million places Ethena in a long-term growth position. The support shown by M2 proves that the protocol has the capability in the synthetic dollar arena. The role of Ethena in DeFi is projected to grow even more as institutional interest continues to accumulate.
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