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- Ethena gains momentum as StablecoinX and TLGY raise $530M, pushing commitments to $890M pre-merger.
- The merged entity, StablecoinX Inc., will control over 3B ENA as the first treasury unit in the ecosystem.
- USDe supply climbed to $12.6B within ten months, ranking third among global stablecoin issuers by size.
Ethena is gaining traction after the StablecoinX and TLGY acquisition made $530 million from a private investment in public equity. Total commitments are currently $890 million prior to the planned merger and Nasdaq listing. According to the company, the resulting entity will be called StablecoinX Inc. It will be the first Ethena treasury unit holding more than 3 billion ENA tokens.
The agreement was priced at $10 per share. A portion of the funds was spent acquiring discounted locked ENA from a foundation subsidiary. The funding brought new investors, including Susquehanna Crypto, Brevan Howard, YZi Labs, and IMC Trading. Existing backers Dragonfly, ParaFi Capital, Maven11, Kingsway, Mirana, and Haun Ventures also participated in the round.
Ethena Boosts Liquidity With $530M Funding
The Ethena Foundation’s director, Marc Piano, stated that the increase would enhance ENA’s liquidity and resilience. He also stated that the new funding will be used to expand the stablecoins USDe and USDtb and provide funding for new products that the Ethena protocol has planned.
The funding is a follow-up to an earlier announcement on July 21. At the time, StablecoinX and TLGY announced the merger, a preliminary PIPE financing of $360 million, and an ENA buyback program of $260 million.
The protocol developed by Ethena Labs was launched early in 2024. It featured synthetic stablecoins backed by an insensitive model (delta-neutral) rather than more traditional reserves. Governance is managed by the Ethena Foundation, which is also responsible for the long-term ecosystem development and ensures the proper, sustainable, and transparent run of the protocol.
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USDe Hits $12.6B Market Cap in Under a Year
Adoption has increased at a record pace. According to a report by Binance Research, USDe reached a market capitalization of $12.7 billion in September, having exceeded the $10 billion mark just ten months after its launch. In comparison, Tether’s USDT took more than seven years to reach that level, whereas Circle’s USDC reached it in just over three years.
Source: Token Terminal
Token Terminal is used to show recent momentum. USDe increased its circulation by 31% in the last month, becoming the third-largest stablecoin issuer (behind Tether and Circle). This increase shows the increasing demand for synthetic stablecoins based on hedging instead of traditional collateral.
Revenue has increased in proportion to adoption. In August, Ethena’s protocol generated weekly earnings exceeding $13 million and accounted for over $500 million in cumulative revenue. Binance Research attributed this growth to increasing demand for USDe and steady yield capture from Ethena’s hedging model.
Also Read: Stablecoin Adoption Grows as Kazakhstan’s AFSA Opens Payment Framework
