"USDe Stablecoin Surges to $6B, Attracts $100M Funding"

USDe Stablecoin Developer Ethena Secures $100M in Funding

Ethena, the developer behind the synthetic stablecoin USDe, has raised $100 million in a funding round led by prominent investors, including Franklin Templeton and F-Prime Capital, an affiliate of Fidelity Investments. The funding, completed in December, aims to support the development of a similar token tailored to traditional financial institutions.

Founder Guy Young has previously announced plans to launch iUSDe, a token designed specifically for regulated financial institutions. Unlike other stablecoins, USDe is not backed 1:1 by fiat assets. Instead, it maintains its peg through collateralizing stablecoins and taking futures positions with large open interest.

USDe's market capitalization has surged to around $6 billion this month, making it the third-largest stablecoin behind Tether's USDT and Circle's USDC, which are worth $142 billion and $57 billion respectively. Some market observers view USDe as a potential safe haven during periods of increased volatility in the broader crypto market.

Arthur Hayes, chief investment officer of Maelstrom and an investor and advisor to Ethena, has stated that the digital asset fund has increased its exposure to USDe to record levels. Hayes also mentioned that the fund will be prepared with substantial dry powder to buy the dip on Bitcoin.

Ethena did not immediately respond to CoinDesk's request for comment on the $100 million funding round.