Ethena Crypto Disclose $100 Million to Fund Similar Projects to USDe

Ethena, a cryptocurrency project boasting a rapidly expanding dollar-pegged coin, recently disclosed that it received $100 million in funding in December 2024 to facilitate the introduction of a similar token designed explicitly for traditional financial institutions.

According to Bloomberg, this previously unreported fundraising round attracted a notable roster of investors, including Franklin Templeton and F-Prime Capital, the venture capital arm of Fidelity Investments.

Ethena Crypto Projects and Collabs

Ethena operates two distinct cryptocurrencies: ENA, a governance token granting holders a voice in the project’s direction, and USDe, a “synthetic dollar” currently yielding 9% to holders. USDe’s remarkable growth, reaching a circulation value of nearly $6 billion, primarily stems from the buoyant cryptocurrency market. At one point, this market allowed Ethena to offer yields as high as 60%.

The foundation supporting Ethena sold ENA tokens to investors at an average price of approximately $0.40. While ENA’s price subsequently soared to around $1.30 in mid-December, it has since experienced a significant decline of almost 70%, according to CoinGecko data.

Ethena’s influence extends beyond its high-profile financial backers. In December 2024, we announced a strategic partnership with World Liberty Financial, a cryptocurrency project associated with former US President Donald Trump and his sons.

This collaboration highlights Ethena’s foray into established political networks, particularly given Trump’s vocal support for cryptocurrency and his launch of a memecoin before his return to the White House.

Ethena Labs Funding Rounds

Ethena Labs secured $14 million in a strategic funding round in February 2024, achieving a $300 million valuation. Dragonfly and Maelstrom, the family office of BitMEX founder Arthur Hayes, co-led this earlier round.

The USDe token operates on a reserve system, holding digital assets, including stablecoins such as USDT and USDC. This differs significantly from USDT and USDC; those stablecoins rely primarily on highly liquid and secure assets such as US Treasury bills.

Like sUSDe, iUSDe is a rewards token acquired through staking USDe on the Ethena platform. Its structure incorporates a wrapper mechanism enabling programmed transfer restrictions, ensuring compliance with traditional financial entities’ regulatory requirements.

The December funding round provided capital for developing a new blockchain for the Ethena network and its associated ecosystem. Furthermore, these funds support the launch of iUSDe, a product tailored for institutional investors.

Notably, Ethena’s existing USDe has established itself as the fourth-largest stablecoin, with a circulating supply of $5.9 billion. iUSDe, unveiled in January 2025, represents Ethena’s strategy to extend its staked USDe product (sUSDe) to traditional finance.

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