Ethena's USDe Surpasses $12B—Rewriting Stablecoin Growth Records

StablecoinX, a digital asset management firm, has secured an additional $530 million in funding, bringing its total commitments to $890 million ahead of its planned merger with TLGY Acquisition and Nasdaq listing. The combined company, set to be renamed StablecoinX Inc., is poised to hold over 3 billion ENA tokens, the native token of the Ethena protocol. This strategic move positions the firm as the first dedicated treasury business for the Ethena ecosystem, which issues USDe and USDtb stablecoins, two synthetic dollar stablecoins that have gained significant traction in the digital finance sector [1]. The new funding was raised through a private investment in public equity (PIPE) transaction, a method that allows public companies to raise capital by selling discounted shares to institutional investors. The deal, priced at $10 per share, attracted both new and returning institutional backers, including YZi Labs, Brevan Howard, Susquehanna Crypto, IMC Trading, Dragonfly, ParaFi Capital, Maven11, Kingsway, Mirana, and Haun Ventures. A portion of the proceeds will be allocated to the purchase of discounted locked ENA tokens from a foundation subsidiary, further supporting the Ethena ecosystem’s growth [2]. The announcement follows a July 21 disclosure that outlined the proposed merger between TLGY and StablecoinX, an initial $360 million PIPE financing, and a $260 million ENA buyback program. Marc Piano, director at the Ethena Foundation, emphasized that the additional funding would strengthen ecosystem resilience, deepen ENA liquidity, and support the sustainable growth of USDe, USDtb, and future Ethena products [1]. The Ethena protocol, launched in early 2024 by Ethena Labs, issues synthetic dollar stablecoins such as USDe and USDtb. These stablecoins are backed by a delta-neutral hedging model rather than traditional reserves. As of September, USDe became the fastest stablecoin to surpass $10 billion in supply, reaching $12.6 billion. This rapid growth was reported by Binance Research, which noted that USDe achieved this milestone in under ten months, far outpacing the 88 months it took for Tether’s USDT and 38 months for Circle’s USDC to reach similar levels. Token Terminal data further indicates that USDe supply has grown 31% in the past month, making Ethena the third-largest stablecoin issuer behind Tether and Circle [1]. Ethena’s ecosystem has also demonstrated strong financial performance, generating over $500 million in cumulative revenue as of August. In recent weeks, the protocol has exceeded $13 million in weekly earnings, driven by higher demand for USDe and returns from its hedging model, which captures yield from crypto markets to maintain the stablecoin’s peg [1]. Additionally, Ethena’s fiat-backed stablecoin, USDtb, is being developed with a pathway to compliance under the recently enacted U.S. GENIUS Act, signed into law by President Donald Trump on July 18. This regulatory development underscores the growing importance of stablecoins in the broader financial landscape and highlights Ethena’s efforts to align with evolving legal frameworks [1]. The strategic partnership between StablecoinX and the Ethena Foundation includes a multi-year collaboration agreement designed to foster long-term alignment. As part of this agreement, an Ethena Foundation subsidiary will use all cash proceeds from the locked ENA token sale to purchase ENA across public markets via intermediary market makers. This approach reinforces the alignment between the Ethena Foundation and StablecoinX shareholders, ensuring that both parties benefit from the ecosystem’s growth [2]. Furthermore, StablecoinX has formed a Strategic Advisory Board to provide high-level, non-governing strategic counsel as the company works toward implementing its multi-year ENA treasury strategy and scaling validator and infrastructure services in support of the Ethena ecosystem. Rob Hadick, General Partner at Dragonfly, will serve as the board’s chairman. The advisory board aims to offer insights on ecosystem alignment, market structure, partnerships, and governance best practices, with a focus on long-term value creation for public shareholders [2]. Guy Young, founder of Ethena Labs and advisor to StablecoinX, noted that the combined company’s permanent capital mandate and expanded resources will help support and secure the Ethena ecosystem, particularly as USDe circulation has more than doubled to over $12 billion since the initial PIPE announcements. A partnership with Anchorage Digital Bank to onshore USDtb is also underway, with the aim of making it the first stablecoin with a clear pathway to being compliant with the GENIUS Act [2]. The merger between TLGY and StablecoinX is expected to close in Q4 2025, subject to shareholder approval and other customary closing conditions. Once finalized, StablecoinX’s Class A common shares will be listed on Nasdaq under the ticker symbol “USDE.” The transaction will be documented in a registration statement filed with the Securities and Exchange Commission, which will include a preliminary proxy statement for TLGY and a preliminary prospectus for StablecoinX [2]. The growing significance of stablecoins in the global financial system is evident in the increasing competition among platforms seeking to establish themselves as leaders in this space. Ethena’s rapid ascent, supported by its innovative hedging model and strong institutional backing, positions it as a key player in the evolving stablecoin market. As the sector continues to expand, regulatory developments and market dynamics will play a crucial role in shaping the future of stablecoin adoption and usage. Source: [1] StablecoinX and Ethena Ecosystem Growth (https://cointelegraph.com/news/tlgy-and-stablecoinx-secure-530m-pipe-as-ethena-s-usde-becomes-fastest-stablecoin-to-10b-supply) [2] TLGY and StablecoinX Announce Additional Financing (https://www.morningstar.com/news/business-wire/20250905713395/tlgy-acquisition-corp-and-stablecoinx-assets-inc-announce-additional-530-million-in-pipe-financing-and-creation-of-new-strategic-advisory-board)