Ethena Allocates $96M to Introduce a Compliant Stablecoin in Response to Market Challenges

Ethena Labs Withdraws Additional ENA Tokens Amid Strategic Shifts

Ethena Labs, the team responsible for the synthetic stablecoin USDe, has reportedly withdrawn another 25 million ENA tokens from the Bybit exchange, according to data from blockchain analytics provider LookOnChain. This latest transaction, valued at roughly $6 million and executed on December 2, continues a pattern of significant withdrawals. Since November 7, the same wallet has transferred a total of 405.15 million ENA tokens—worth approximately $96.8 million—from both Bybit and Coinbase Prime. These movements have sparked discussions about Ethena Labs' approach to liquidity and its broader market strategy.

Expansion of Stablecoin Offerings and Regulatory Developments

The recent withdrawals coincide with Ethena Labs' efforts to broaden its stablecoin portfolio. Earlier this month, the company revealed a collaboration with Anchorage Digital, a federally regulated crypto bank, to launch its $1.5 billion USDtb stablecoin in the United States. This initiative operates under the new GENIUS Act, a law signed by President Trump that establishes clear regulatory guidelines for stablecoin issuers and allows them to function within a defined compliance structure.

ENA Token Performance Surpasses Market Trends

Over the past 24 hours, Ethena’s governance token, ENA, has climbed more than 10%, outperforming the wider cryptocurrency market, where many alternative coins experienced declines of 5% to 10% during the same timeframe.

Industry-Wide Pressures and Treasury Management

The timing of Ethena’s withdrawals aligns with broader challenges facing digital asset treasury companies. For example, FG Nexus, an Ether-focused treasury firm, recently sold close to 11,000 ETH (about $33 million) to finance a buyback of 3.4 million shares. This move, which reduced FG Nexus’ ETH reserves to around 40,000, reflects a growing trend among such firms to liquidate crypto assets in order to support their stock prices, especially as these often trade below the net asset value of their crypto holdings. Ethena’s recent ENA token sales may similarly be aimed at addressing liquidity requirements or reallocating resources strategically.

Decline in USDe’s Total Value Locked

Ethena’s USDe stablecoin, which generates returns through perpetual funding rates, has experienced a sharp drop in total value locked (TVL), falling nearly 50% from $14.8 billion in October to $7.6 billion. This decrease is largely due to the unwinding of leveraged positions on DeFi platforms such as Aave, where users had previously borrowed against staked USDe to increase their exposure. As funding rates have tightened, these leveraged strategies have become less profitable, leading to widespread deleveraging.

Looking Ahead: Navigating a Changing Landscape

Ethena Labs’ recent activities highlight the shifting landscape of stablecoins and decentralized finance, where regulatory changes and liquidity management play increasingly important roles. By pivoting to USDtb under the GENIUS Act, Ethena positions itself to attract institutional interest in the U.S., while its on-chain transactions indicate a continued focus on maintaining operational agility and market stability. As the crypto sector adapts to evolving regulations and economic pressures, Ethena’s strategic decisions are expected to remain under close observation by both investors and industry analysts.