Ethena Shifts $96M to Launch Regulated Stablecoin Amid Market Pressures

Ethena Labs, the development organization behind the synthetic stablecoin USDe, is suspected of withdrawing another 25 million ENA tokens from Bybit, according to on-chain analytics firm LookOnChain. The transaction, valued at approximately $6 million, occurred on December 2 and marks the latest in a series of withdrawals from the exchange. Since November 7, the same wallet has moved a total of 405.15 million ENA ($96.8 million) from Bybit and Coinbase Prime, raising questions about the firm's liquidity management and market positioning.

The withdrawals come amid Ethena's broader strategic moves to expand its stablecoin offerings. Earlier this month, the firm announced a partnership with Anchorage Digital, a federally regulated crypto bank, to issue its $1.5 billion USDtb stablecoin in the U.S. under the newly enacted GENIUS Act. The legislation, signed into law by President Trump, provides regulatory clarity for stablecoin issuers, enabling them to operate within a structured compliance framework. Ethena's governance token, ENA, has surged over 10% in the past 24 hours, outperforming the broader crypto market, which saw many altcoins decline by 5%-10% during the same period.

The timing of the withdrawals coincides with broader market pressures affecting digital asset treasury companies (DATs). Ether treasury firm FG Nexus recently sold nearly 11,000 ETH ($33 million) to fund a stock buyback of 3.4 million shares, reflecting a trend where firms liquidate crypto holdings to shore up equity values. FG Nexus' move, which reduced its ETH holdings to around 40,000, highlights the challenges DATs face as stock prices trade below the net asset value of their underlying crypto portfolios. Ethena's recent ENA sales may similarly aim to address liquidity needs or strategic reallocations.

Ethena's USDe stablecoin, which earns yield from perpetual funding rates, has also seen a significant decline in total value locked (TVL), dropping nearly 50% to $7.6 billion from $14.8 billion in October. This contraction is attributed to the unwinding of leveraged strategies on DeFi protocols like Aave, where users previously borrowed against staked USDe to amplify exposure. As perpetual funding rates have compressed, the profitability of these strategies has eroded, prompting widespread deleveraging.

Ethena's actions underscore the evolving dynamics in the stablecoin and DeFi markets, where regulatory developments and liquidity management intersect. Ethena's pivot to USDtb under the GENIUS Act positions it to tap into U.S. institutional demand, while its on-chain activity suggests ongoing efforts to balance operational flexibility with market stability. As crypto markets navigate regulatory shifts and macroeconomic pressures, Ethena's strategic maneuvers will likely remain a focal point for investors and analysts alike.