Ethena, a cryptocurrencies/">crypto project behind the popular dollar-pegged coin USDe, has raised $100 million in funding from top investors, including Franklin Templeton and F-Prime Capital.
The funding round, completed in December, will help Ethena launch a new stablecoin, iUSDe, tailored for traditional financial institutions. The token will come with transfer restrictions, allowing regulated firms to use it.
“Ethena’s singular focus for the first quarter of the year is to work with finance distribution partners to enable their clients to access iUSDe,” said Guy Young, Ethena Labs founder.
USDe, marketed as a “synthetic dollar,” has seen its circulation swell to almost $6 billion, offering holders a 9% yield. The token is backed by a reserve of digital assets, including stablecoins like USDT and USDC.
Ethena uses a version of the basis trade to generate yield, exploiting price discrepancies in spot and futures markets. However, this strategy could be tested in a bear market.
Dragonfly Capital Partners, Polychain Capital LP, and Pantera Capital Management LP also participated in the funding rounds.
Ethena has established connections in the US halls of power, including a strategic partnership with World Liberty Financial, a crypto project promoted by US President Donald Trump and his sons.
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