Ethena, a developer of synthetic stablecoins, has secured $100 million in funding to create a new token targeted at traditional financial institutions. This significant investment is expected to have far-reaching implications for the crypto market.
Ethena, the developer of the synthetic stablecoin USDe, has secured $100 million in funding to finance a similar token targeted at traditional financial (TradFi) institutions. This significant investment was completed in December, with notable investors such as ‘Franklin Templeton’ and Fidelity Investments-affiliated F-Prime Capital participating in the round.
Key Features of USDe
USDe differs from other stablecoins in that it maintains its peg by collateralizing stablecoins and taking futures positions with large open interest. This unique approach sets it apart from other tokens, which are typically backed 1:1 by fiat assets. As a result, USDe’s market cap has jumped to around $6 billion this month, making it the third largest stablecoin behind Tether‘s USDT and Circle‘s USDC.
USDe’s stability is typically maintained through a peg to the US dollar, ensuring its value remains relatively constant despite market fluctuations.
This makes it an attractive option for investors seeking reduced exposure to cryptocurrency price volatility.
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The market capitalization of USDe refers to the total value of all outstanding USDe tokens in circulation.
It is a key indicator of the project's overall health and liquidity.
As of my last update, I do not have real-time access to current market data.
However, it is essential for investors and stakeholders to regularly check reputable sources for up-to-date information on USDe's market capitalization.
This metric can fluctuate significantly due to various market and economic factors.
Growing Interest in USDe
Some observers view USDe as a potential safe haven during periods of increased volatility in the wider crypto market. In fact, ‘Arthur Hayes,’ chief investment officer of Maelstrom, has raised his fund’s exposure to USDe ‘to record levels.‘ Hayes, who is an investor and advisor to Ethena, believes that USDe will be a key player in the stablecoin market.
Arthur Hayes is an American former professional poker player and current Chief Executive Officer of the BitMEX cryptocurrency derivatives exchange.
He co-founded BitMEX in 2014 with Samuel Reed and Ben Delo.
Prior to his career in finance, Hayes was a successful poker player, competing at various tournaments worldwide.
Future Plans for iUSDe
Ethena plans to roll out iUSDe, a token tailored to regulated financial institutions. This move marks an exciting development in the world of stablecoins, as it seeks to bridge the gap between traditional finance and cryptocurrency markets.
The $100 million funding round is a significant milestone for Ethena, and its plans to develop a stablecoin for TradFi institutions are likely to have far-reaching implications for the crypto market. As USDe continues to gain traction, it will be interesting to see how this new development unfolds.
- coindesk.com | USDe Stablecoin Developer Ethena Raises $100M: Bloomberg
