StablecoinX along with TLGY Acquisition have successfully secured an additional $530 million in financing aimed at expanding their portfolio of digital assets. This strategic addition brings the total investment commitment to $890 million ahead of their impending merger and listing on Nasdaq.
The unified entity will be renamed StablecoinX Inc. and is projected to manage over 3 billion ENA tokens, which are the native currency of the Ethena protocol. This move is pioneering as it establishes the first dedicated treasury to bolster the Ethena ecosystem, which is the issuer of the USDe and USDtb stablecoins.
This capital influx was attained through a private investment in public equity (PIPE) transaction. PIPE enables publicly traded companies to raise capital by offering discounted shares to institutional investors, providing a flexible funding avenue.
Among the latest investors are YZi Labs, Brevan Howard, Susquehanna Crypto, and IMC Trading. The new round also attracted ongoing supporters such as Dragonfly, ParaFi Capital, Maven11, Kingsway, Mirana, and Haun Ventures.
The PIPE transaction priced shares at $10 each, with a portion of the proceeds designated for discounted locked ENA acquired from a foundation subsidiary.
Marc Piano, director at the Ethena Foundation, highlighted that this expanded funding enhances the ecosystem’s resilience, improves liquidity for the ENA token, and supports the sustainable advancement of stablecoins USDe and USDtb, along with future Ethena ventures.
This announcement follows an earlier revelation on July 21 which detailed the merger plans between TLGY and StablecoinX, an initial $360 million PIPE financing, and a $260 million ENA buyback initiative.
Ethena Stablecoin Achieves New Milestones
Initiated in early 2024 by Ethena Labs, the Ethena protocol produces synthetic dollar stablecoins like USDe and USDtb. Unlike traditional stablecoins backed by reserves, these are supported through a delta-neutral hedging strategy that manages risk uniquely.
Governed and nurtured by the Switzerland-based Ethena Foundation, the project is at the forefront of innovation in the stablecoin space.
According to a September Binance Research report, USDe became the fastest stablecoin to surpass the $10 billion supply mark, reaching $12.6 billion in less than ten months. This is a significant achievement compared to Tether’s 88 months and Circle’s 38 months to reach comparable levels.
USDe stablecoin supply. Source: Token Terminal
Data from Token Terminal shows that the USDe supply has grown by 31% in the past month, positioning Ethena as the third-largest stablecoin issuer, trailing only Tether and Circle.
Additionally, Ethena has generated more than $500 million in cumulative revenue as of August, with weekly earnings recently exceeding $13 million. This growth is fueled by increased demand for USDe and returns generated from Ethena’s hedging model capturing yields from crypto markets to maintain price stability.
Binance Research also reports that Ethena’s fiat-backed stablecoin, USDtb, is being developed with compliance in mind under the US GENIUS Act, recently signed into law by President Donald Trump on July 18.
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