Ethena Raises $100M to Expand TradFi Token

Ethena, the developer behind the synthetic stablecoin USDe, has raised $100 million to support the development of a new token aimed at traditional financial institutions (TradFi). The funding round, completed in December, included prominent investors such as Franklin Templeton and F-Prime Capital. Ethena plans to use the funds to launch iUSDe, a token tailored for regulated financial institutions, and to develop its own blockchain. USDe, a synthetic stablecoin not backed 1:1 by fiat, has seen its market cap rise to $6 billion, making it the third-largest stablecoin behind Tether and Circle. The project has also formed a strategic partnership with World Liberty Financial, a project backed by President Donald Trump. Despite some volatility in the price of Ethena's governance token, ENA, the company aims to expand its offerings into the TradFi sector.