Ethena’s Remarkable Ascent: StablecoinX Secures $890M in Crypto Financing for ENA Treasury

The cryptocurrency landscape continually evolves, marked by significant financial milestones. Recently, a major development emerged that signals robust growth and strategic investment in the stablecoin sector. StablecoinX, in collaboration with TLGY Acquisition, secured an impressive $890 million in crypto financing. This substantial capital injection specifically targets Ethena’s ENA treasury, marking a pivotal moment for the protocol.

Unpacking the Landmark StablecoinX Financing Deal

StablecoinX and TLGY Acquisition have successfully raised an additional $530 million in financing. This latest round brings their total commitments to an astounding $890 million. The funds are earmarked for acquiring digital assets, primarily benefiting the Ethena ecosystem. This move precedes a planned merger and a Nasdaq listing, indicating significant institutional confidence.

The combined entity, soon to be renamed StablecoinX Inc., projects holding over 3 billion ENA tokens. ENA is the native token of the innovative Ethena protocol. Significantly, this new company will operate as the first dedicated treasury business for the Ethena ecosystem. Ethena, in turn, issues the prominent USDe and USDtb stablecoins. This strategic positioning underscores the growing importance of dedicated infrastructure for digital assets.

Strategic Investment Fuels Ethena’s ENA Treasury

The capital was raised through a private investment in public equity (PIPE) transaction. This mechanism allows public companies to secure capital by selling discounted shares to institutional investors. New investors joined the ranks, including YZi Labs, Brevan Howard, Susquehanna Crypto, and IMC Trading. Additionally, returning backers such as Dragonfly, ParaFi Capital, Maven11, Kingsway, Mirana, and Haun Ventures reaffirmed their support. This diverse investor base highlights broad market interest in StablecoinX‘s vision and Ethena’s potential.

The PIPE deal priced shares at $10 each. A portion of the proceeds was allocated to purchase discounted, locked ENA tokens from a foundation subsidiary. Marc Piano, director at the Ethena Foundation, emphasized the impact. He stated, “The additional funding strengthens ecosystem resilience, deepens ENA liquidity, and supports the sustainable growth of USDe, USDtb, and future Ethena products.” This commitment ensures the protocol’s stability and expansion.

This announcement follows a July 21 disclosure. That initial report outlined TLGY and StablecoinX’s proposed merger, an initial $360 million PIPE financing, and a $260 million ENA buyback program. These successive financial moves demonstrate a clear strategy for long-term growth and market integration.

Ethena Protocol: A Rising Force in Stablecoin Innovation

Launched in early 2024 by Ethena Labs, the Ethena protocol issues synthetic dollar stablecoins. These include USDe and USDtb. Unlike traditional stablecoins, Ethena’s offerings are backed by a delta-neutral hedging model, not conventional reserves. The Switzerland-based Ethena Foundation oversees the project. It is responsible for governance and ongoing ecosystem development.

Ethena’s USDe stablecoin is setting remarkable records. According to Binance Research’s September report, USDe became the fastest stablecoin to surpass $10 billion in supply. It reached $12.6 billion as of September. This milestone occurred in under ten months. For comparison, Tether’s USDT took approximately 88 months, and Circle’s USDC needed 38 months to achieve the same feat. This rapid adoption highlights USDe’s market appeal.

USDe stablecoin supply. Source: Token Terminal

Market Dominance and Future Growth of USDe

Token Terminal data further illustrates USDe‘s impressive trajectory. Its supply grew 31% in the past month alone. This growth positions Ethena as the third-largest stablecoin issuer globally. It now trails only industry giants Tether and Circle. Such rapid expansion underscores its disruptive potential within the digital asset space.

Furthermore, Ethena has generated substantial revenue. The protocol accumulated over $500 million in cumulative revenue as of August. It recently exceeded $13 million in weekly protocol earnings. Binance Research attributes this increase to two key factors:

• Higher demand for USDe.
• Strong returns from the project’s hedging model.

This model effectively captures yield from crypto markets. It ensures the stablecoin’s peg remains robust. The protocol also actively develops its fiat-backed stablecoin, USDtb. This development includes a clear pathway to compliance under the recently enacted US GENIUS Act. US President Donald Trump signed this law on July 18, paving the way for regulated stablecoin operations. Ethena is strategically preparing for a future with enhanced regulatory clarity.

The substantial crypto financing secured by StablecoinX for Ethena’s ENA treasury represents a major vote of confidence. This capital injection will undoubtedly bolster Ethena’s position. It will support the continued expansion of USDe and USDtb, solidifying Ethena’s role as a key innovator in the stablecoin market. The industry watches closely as Ethena leverages this investment for future growth and resilience.