Ethena has secured $100 million in funding from major investors to develop its blockchain ecosystem and introduce iUSDe, a token tailored for traditional financial institutions.
Major Fundraising Secured
Ethena, a crypto project that has rapidly gained prominence with its dollar-pegged token, has raised $100 million in a funding round completed in December. Investors in the round included Franklin Templeton, Polychain, Pantera, Dragonfly, and F-Prime Capital, the venture capital arm of Fidelity Investments, according to sources familiar with the matter.
USDe and ENA: Ethena’s Key Tokens
Ethena operates two primary cryptocurrencies: USDe, a synthetic dollar currently offering a 9% yield, and ENA, a governance token that provides holders with decision-making power in the project. Since its launch, USDe’s circulation has surged to nearly $6 billion, fueled by a booming crypto market that once enabled Ethena to offer yields as high as 60%.
The ENA tokens sold in the funding round were priced at an average of just under $0.40. ENA saw a sharp rise to approximately $1.30 in mid-December before experiencing a significant decline of nearly 70%. The token is currently trading at around $0.42, according to CoinGecko data.
Expansion Plans and Institutional Focus
Ethena plans to use the newly raised capital to build a new blockchain network and expand its broader ecosystem. A key part of this initiative is the launch of iUSDe, a token designed specifically for traditional financial institutions. Unlike USDe, iUSDe will feature transfer restrictions and be distributed through financial partners, allowing institutions to engage with the token while avoiding direct interaction with crypto rails.
Additionally, a portion of the funds has been allocated for repurchasing tokens from existing investors to adjust the cap table cost basis.
Political and Strategic Partnerships
Ethena has also been making strides in establishing strategic connections beyond the crypto sector. In December, World Liberty Financial, a crypto project associated with former U.S. President Donald Trump and his sons, announced a partnership with Ethena Labs. Trump has positioned himself as a crypto advocate, launching his own memecoin before his return to the White House.
Despite the significant developments, Ethena Labs has declined to comment on the token sale. However, industry sources confirm that the project remains a major player in the evolving crypto landscape, with its synthetic dollar token continuing to see substantial adoption.
With strong backing from institutional investors and a clear strategy for expansion, Ethena is positioning itself for further growth as it aims to bridge the gap between decentralized finance and traditional financial markets.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.