Ethena's Rocket Fuel: How $890M Boosts Stablecoin Supremacy

StablecoinX and TLGY Acquisition have completed a $530 million private investment in public equity (PIPE) financing, bringing their total committed funding to $890 million ahead of a planned merger and Nasdaq listing. The combined company, to be renamed StablecoinX Inc., is set to hold more than 3 billion ENA tokens, the native token of the Ethena protocol. The funding round reflects a growing institutional interest in the Ethena ecosystem, with participation from new investors like YZi Labs, Brevan Howard, Susquehanna Crypto, and IMC Trading, as well as returning backers including Dragonfly and Haun Ventures. The PIPE deal was priced at $10 per share, with a portion of the proceeds used to purchase discounted locked ENA tokens from a foundation subsidiary [1].

The Ethena protocol, launched in early 2024 by Ethena Labs, issues synthetic dollar stablecoins such as USDe and USDtb, which are backed by a delta-neutral hedging model rather than traditional reserves. As of September, USDe had become the fastest stablecoin to reach $10 billion in supply, achieving the milestone in under ten months, compared to 88 months for Tether’s USDT and 38 months for Circle’s USDC, according to Binance Research. Token Terminal data indicates that USDe’s supply has grown by 31% in the past month, placing Ethena as the third-largest stablecoin issuer after Tether and Circle. The Ethena Foundation, based in Switzerland, oversees governance and ecosystem development for the protocol [1].

Ethena has also generated over $500 million in cumulative revenue as of August, with recent weekly protocol earnings exceeding $13 million. The growth is attributed to higher demand for USDe and the yields captured through the hedging model, which supports the stablecoin’s peg to the U.S. dollar. Additionally, Ethena is developing USDtb, a fiat-backed stablecoin with a pathway to compliance under the recently enacted U.S. GENIUS Act, signed into law by President Donald Trump on July 18. A partnership with Anchorage Digital Bank aims to onboard USDtb to traditional banking systems, potentially enhancing its regulatory profile [1].

The additional funding is expected to strengthen the Ethena ecosystem by increasing ENA liquidity and supporting the sustainable growth of its stablecoins. Marc Piano, director at the Ethena Foundation, emphasized that the capital would "deepen ENA liquidity and support the sustainable growth of USDe, USDtb, and future Ethena products." The funding also aligns with a $570 million ENA buyback program announced by the Ethena Foundation, building on an initial $260 million buyback initiative. This move reinforces investor confidence and demonstrates a long-term commitment to the Ethena token’s value [1].

StablecoinX’s strategic roadmap includes the formation of a Strategic Advisory Board, chaired by Rob Hadick of Dragonfly, to provide non-governing strategic counsel. This advisory board is expected to complement the company’s leadership and enhance its ability to execute a multi-year treasury strategy focused on accumulating ENA tokens. Young Cho, CEO of both TLGY and SC Assets, stated that the funding "enhances StablecoinX’s ability to pursue a deliberate, multi-year ENA accumulation strategy while giving public market investors transparent, well-governed access to the Ethena ecosystem." The transactions are anticipated to close in Q4 2025, subject to shareholder approval and regulatory requirements [1].

The broader implications of Ethena’s rapid growth highlight the increasing significance of stablecoins in the digital asset landscape. With over 99% of stablecoins pegged to the U.S. dollar, these tokens continue to reinforce the greenback’s dominance in global finance. As regulatory frameworks evolve, including the U.S. GENIUS Act and Hong Kong’s licensing requirements, the stablecoin industry is gaining legitimacy while also drawing attention to geopolitical concerns. For China, the rise of stablecoins presents a dilemma: while Hong Kong serves as a testing ground, Beijing remains cautious about the risks and potential implications for the international monetary system [3].

Source: [1] StablecoinX expands financing to $890M for Ethena's ENA (https://cointelegraph.com/news/tlgy-and-stablecoinx-secure-530m-pipe-as-ethena-s-usde-becomes-fastest-stablecoin-to-10b-supply) [2] TLGY Acquisition Corp. and StablecoinX Assets Inc. Announce Additional $530 Million in PIPE Financing and Creation of New Strategic Advisory Board (https://www.businesswire.com/news/home/20250905713395/en/TLGY-Acquisition-Corp.-and-StablecoinX-Assets-Inc.-Announce-Additional-%24530-Million-in-PIPE-Financing-and-Creation-of-New-Strategic-Advisory-Board) [3] China's stablecoin dilemma: why US dollar tokens matter (https://www.scmp.com/economy/china-economy/article/3324322/chinas-stablecoin-dilemma-why-us-dollar-tokens-matter-and-how-beijing-might-respond)