Ether.fi to launch stablecoin on Ethena Whitelabel

Ether.fi to launch stablecoin on Ethena Whitelabel
Ether.fi unveils stablecoin built on Ethena Whitelabel

​Ether.fi has announced ether.fi USD, a U.S. dollar stablecoin built on Ethena Whitelabel. Ethena will handle reserve management, issuance and redemption of the asset, as well as regulatory compliance.

The companies have not yet disclosed a launch date, supported blockchains or the composition of the reserves. The new asset is expected to be integrated into the Ether.fi ecosystem, which began as an Ethereum liquid staking protocol before expanding into payment products.

According to Ethena, Ether.fi currently holds more than $300 million in stablecoins. The company plans to migrate this liquidity to ether.fi USD and use it across its services.

New asset to be integrated with Cash card

One of the main use cases for ether.fi USD will be the Cash payment card, launched in 2024. Total transaction volume on the card has approached $1 billion, while the number of active cards has surpassed 100,000.

Ethena believes crypto neobanks will gradually move toward controlling their entire financial infrastructure, including customer funds that are temporarily idle. The launch of ether.fi USD will allow the project to generate revenue from this liquidity alongside its other business lines.

Ethena Whitelabel allows third-party projects to issue branded dollar-denominated assets while outsourcing the underlying infrastructure to Ethena. Collateral can include USDe, USDtb and other stablecoins.

The infrastructure has already been used by Jupiter to launch JupUSD and by MegaETH for USDm. Whitelabel products also include suiUSDe for the Sui ecosystem.

Ethena expands dollar assets beyond crypto trading

The partnership with Ether.fi continues Ethena's expansion beyond USDe and traditional crypto market use cases. In September, the company introduced its Pay app, designed for everyday payments, savings and international transfers.

The service aims to make digital dollars function more like conventional banking apps. Together with Whitelabel, it gives Ethena two avenues for expansion: its own payment products and infrastructure for third-party asset issuance.

Earlier, we reported that ENA rose more than 10% following the approval of a token buyback program. A portion of the protocol's revenue is expected to fund the purchases.

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