Ethena expands USDe beyond crypto markets

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Ethena expands USDe

Highlights

Ethena Pay is launching across 48 countries.
USDe becomes usable for payments and transfers.
Savings yields reach 6% for higher membership tiers.

The beta version of Ethena Pay is built on Avalanche and is initially being introduced across 48 countries, including Japan, Singapore, Australia, Brazil, Mexico, and the United Arab Emirates. The United States and European Union are excluded from the first rollout, though Ethena plans to expand into those markets subject to regulatory requirements, CoinGape reported.

USDe moves toward everyday payments

Ethena Pay gives USDe a broader purpose than its established role in crypto markets. Users can keep USDe as a dollar-denominated balance, receive fiat through IBAN details, or transfer crypto directly into their wallet. Money can also be sent to external bank accounts and converted into the recipient's local currency.

The service supports transfers using usernames or tags without transfer fees. Bank transfers in dollars, euros, and pounds are also free, while other currencies carry charges ranging from 0.05% to 0.1%.

The app includes a payment card available across the Visa merchant network and supports Apple Pay. Cashback starts at 4% for Standard members and rises to 5% for VIP users, with rewards paid in AVAX. Selected merchants offer higher rewards for upper membership tiers.

Savings are another part of the model. Standard accounts can earn 5% annually on balances up to $5,000, while Pro and VIP accounts offer 6% on balances capped at $15,000 and $50,000, respectively. Access to the higher tiers requires locking ENA tokens or meeting referral thresholds.

Regulation remains a key test

Ethena Pay is available in beta on iOS and Android, with stablecoin infrastructure provider Iron supporting its backend. The company chose Avalanche exclusively for the initial product infrastructure.

The expansion comes as USDe has roughly $4 billion in circulation, well below its approximately $15 billion peak in September 2025. Unlike reserve-backed stablecoins such as USDT and USDC, USDe relies on backing assets combined with derivative positions intended to maintain its dollar value.

Regulation could determine how quickly the model expands. German regulator BaFin ordered Ethena GmbH to wind down its USDe operations in 2025 after the company withdrew its application under European crypto rules.

Ethena tests a broader market for USDe

The launch shifts Ethena closer to competing with fintech and neobanking platforms rather than solely with DeFi protocols. Its central test is whether a synthetic dollar can function as the underlying balance for routine payments, savings, and cross-border transfers without requiring consumers to navigate blockchain products directly.

Success would give USDe new demand beyond crypto markets and potentially broaden Ethena's customer base. But expansion into the U.S., EU and other major jurisdictions will depend heavily on regulatory approval, making the 48-country beta an important test of whether crypto-native financial infrastructure can move into everyday banking services.

Earlier, we reported that Binance introduces a USDe yield program enabling users to earn daily rewards without restricting trading.

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