What You Should Know:
- Ethena has decided to terminate its operations in Germany while moving existing users to its British Virgin Islands entity.
- This follows a recent finding by BaFin of significant deficiencies in Ethena’s USDe token.
- The ENA token, part of Ethena’s offerings, has dropped by 2.88% in the last 24 hours.
Ethena, a decentralized finance (DeFi) protocol, has announced its decision to cease operations in Germany, prompted by the German financial regulator BaFin’s identification of “serious deficiencies” in its USDe token. The firm will no longer seek the MiCAR authorization required for operating in Germany.
Ethena communicated its decision via tweet, stating: “We have agreed with BaFin to wind down all activities of Ethena GMBH and will transition all users to Ethena BVI, the entity based in the British Virgin Islands.”
The protocol, which boasts a total value locked (TVL) of $4.9 billion, describes its USDe token as a ‘synthetic dollar,’ backed by Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies. Recently, the ENA token has underperformed in the broader market, which has seen a 1.17% increase as reported by CoinMarketCap.
