Ethena ecosystem gains $530M boost from StablecoinX PIPE deal
StablecoinX and TLGY Acquisition have raised an additional $530 million through a private investment in public equity (PIPE) deal, bringing their total commitments to $890 million.
The combined entity, to be renamed StablecoinX Inc., plans to merge and list on Nasdaq while holding more than 3 billion ENA, the native token of the Ethena protocol, reports Cointelegraph.
According to the company, this will create the first dedicated treasury business for the Ethena ecosystem, which issues the USDe and USDtb stablecoins. New investors include YZi Labs, Brevan Howard, Susquehanna Crypto, and IMC Trading, joining returning backers Dragonfly, ParaFi Capital, Maven11, Kingsway, Mirana, and Haun Ventures.
Building liquidity for Ethena’s ecosystem
The PIPE deal was priced at $10 per share, with part of the funds allocated to discounted locked ENA purchased from a foundation subsidiary. Proceeds will be used to deepen liquidity for ENA and support the growth of Ethena’s stablecoin products. “The additional funding strengthens ecosystem resilience, deepens ENA liquidity, and supports the sustainable growth of USDe, USDtb, and future Ethena products,” said Marc Piano, director at the Ethena Foundation. The announcement builds on July’s disclosure of the proposed merger, which included an initial $360 million PIPE financing and a $260 million ENA buyback program.
Ethena stablecoin breaks records
Launched in early 2024, Ethena issues synthetic dollar stablecoins backed by a delta-neutral hedging model rather than traditional reserves. Its flagship stablecoin, USDe, has grown rapidly, becoming the fastest to exceed $10 billion in supply, hitting $12.6 billion in under 10 months, according to Binance Research. For comparison, Tether’s USDT took 88 months to reach that milestone, while Circle’s USDC needed 38 months. Ethena now ranks as the third-largest stablecoin issuer, trailing only Tether and Circle, with Token Terminal reporting a 31% supply increase in the past month.
The protocol has generated over $500 million in cumulative revenue, exceeding $13 million in weekly earnings, driven by higher demand for USDe and yields from its hedging model. Meanwhile, Ethena’s fiat-backed stablecoin, USDtb, is being developed under the compliance framework of the US GENIUS Act, signed into law by President Donald Trump on July 18.
Recently we wrote that Mastercard’s Head of Crypto Europe, Christian Rau, said the company remains “closely interested in crypto-assets” but views them as a payment technology rather than a financial revolution.
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