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Ethena concludes $100M raise for TradFi expansion

Ethena concludes $100M raise for TradFi expansion

GrafaGrafa2025/02/25 04:30
By:Mahathir Bayena

Ethena (CRYPTO:ENA), the project behind the USDe "synthetic dollar" stablecoin, has successfully concluded a $100 million private token sale to fund the launch of a new cryptocurrency focused on bridging decentralised finance (DeFi) with traditional finance (TradFi).

The funding round, which took place in December 2024, was kept under wraps until recently.

According to a Bloomberg report, the private sale involved Ethena's governance token, ENA, being offered to investors at an average price of $0.40.

Key participants in the funding round included Franklin Templeton, F-Prime Capital (affiliated with Fidelity Investments), Dragonfly Capital Partners, Polychain Capital, and Pantera Capital Management.

The involvement of such prominent investors underscores the growing interest in DeFi from mainstream financial institutions.

Ethena plans to use the raised capital to develop its own blockchain and introduce a new token tailored for TradFi institutions.

This new token, iUSDe, is designed to work like sUSDe but with transfer restrictions enforced on-chain using simple wrapper contracts.

According to Ethena Labs founder Guy Young, enabling iUSDe access for TradFi distribution partners will be Ethena's singular focus for the first quarter of 2025.

In addition to the new token and blockchain, Ethena has also partnered with World Liberty Financial (CRYPTO:WFLI), a DeFi project.

As part of this collaboration, sUSDe will be integrated with WFLI's Aave (CRYPTO:AAVE) instance, allowing users to deposit USDe and receive rewards in both sUSDe and WFLI's WLF token.

Ethena's USDe has a circulation of more than $6 billion, while the ENA token boasts a market cap of $1.268 billion.

At the time of reporting, the Ethena (ENA) price was $0.3674.

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