Overview:

Ethena, the creator of the synthetic stablecoin USDe, has successfully raised $100 million to support the development of a similar token aimed at traditional financial institutions. According to a Bloomberg report from Monday, this funding round was finalized in December, with key investors including Franklin Templeton and F-Prime Capital, affiliated with Fidelity Investments.

Key Highlights:

• USDe has been showing strong growth, now boasting a market cap of around $6 billion, making it the third largest stablecoin after Tether’s USDT and Circle’s USDC.
• Unlike traditional tokens that are backed 1:1 by fiat currencies, USDe utilizes a unique methodology of maintaining its peg through the collateralization of stablecoins and engaging in futures contracts that have significant open interest.

Ethena’s founder, Guy Young, expressed plans to introduce iUSDe, a regulatory-compliant token for established financial sectors. Some financial analysts perceive USDe as a potentially stable haven during market fluctuations. Arthur Hayes, who is both an investor and an advisor to Ethena, remarked that his digital asset fund has increased its position in USDe significantly, stating that they are ready to capitalize on dipping Bitcoin prices.