"Ethena Labs Raises $100M for TradFi Bridge, New Token"

Ethena Labs, a pioneering force in the decentralized finance (DeFi) space, has raised a substantial $100 million in a private token sale, marking a significant step towards its expansion into traditional finance (TradFi). The funding round, led by prominent investors such as Franklin Templeton and F-Prime Capital, will facilitate the creation of a new token tailored to TradFi institutions and the development of Ethena's own blockchain.

The private token sale, conducted in December 2024, saw investors purchasing Ethena's governance token, ENA, at an average price of $0.4. The sale not only bolstered Ethena's financial resources but also forged strategic alliances with key players in the financial world, including Franklin Templeton, F-Prime Capital, Dragonfly Capital Partners, Polychain Capital, and Pantera Capital Management. The involvement of these heavyweights underscores the increasing legitimacy of DeFi among mainstream institutions and Ethena's potential to bridge the gap between DeFi and TradFi.

Ethena's plans for the new infusion of capital include the creation of an independent blockchain and the issuance of a new token designed to cater to TradFi institutions. This new token, iUSDe, is an offshoot of Ethena's flagship stablecoin, USDe, and is designed to work like sUSDe but with transfer restrictions enforced on-chain using simple wrapper contracts. This feature aims to attract TradFi players by enabling them to meet regulatory requirements and risk management policies.

Ethena's flagship product, USDe, is a synthetic dollar stablecoin that remains pegged to the USD through an innovative mechanism. Unlike traditional stablecoins, USDe employs a delta-neutral hedge strategy and off-exchange collateral to maintain its peg. This approach has proven robust, even in the face of market volatility and security vulnerabilities, as demonstrated by Ethena's swift response to the $1.4 billion hack on the Bybit exchange. Ethena's commitment to transparency and investor confidence has been a key factor in driving long-term sustainability across the volatile crypto market.

In addition to its expansion into TradFi, Ethena has also released USDtb, a new stablecoin backed by BlackRock's USD Institutional Digital Liquidity Fund (BUIDL). USDtb is available on various networks and is designed to reinforce USDe stability during market shocks. Furthermore, Ethena has formed an alliance with World Liberty Financial (WFLI), a