Ethena Foundation just secured a massive $100 million in a private sale of its ENA token, marking a major milestone for its synthetic dollar protocol. The previously unannounced sale, completed in December, attracted major investors such as Franklin Templeton, Polychain Capital, Pantera Capital, Dragonfly, and Fidelity’s venture arm, F-Prime, according to sources familiar with the matter.
ENA tokens were sold at an average price just under $0.40 during the funding round. Currently, ENA is trading at $0.42, though it has seen a significant 67% drop from its December high of $1.27.
The fresh capital will be allocated towards several key initiatives aimed at strengthening Ethena’s ecosystem. A primary focus will be the development of a new blockchain tailored to the Ethena network and its expanding ecosystem. In addition, the funds will support the upcoming launch of Ethena’s institutional product, iUSDe, which is expected to cater to the growing demand from traditional finance players looking to tap into DeFi solutions.
Notably, part of the proceeds from the sale was used to repurchase tokens from existing investors, helping to reset the cap table cost basis—a strategic move that could help optimize the project’s financial structure and attract future investors.
Ethena Unveils iUSDe Token to Bridge DeFi and Traditional Finance
Ethena is expanding its suite of synthetic dollar offerings with the introduction of iUSDe, a new rewards token specifically designed for institutional investors. Similar to its retail-focused counterpart, sUSDe, iUSDe will be distributed to users who stake USDe on the Ethena platform. However, the key distinction lies in its architecture: iUSDe employs a wrapper mechanism that enables programmable transfer restrictions, ensuring compliance with regulatory frameworks and making it accessible to traditional financial institutions.
The wrapper feature allows Ethena to implement controls over how the token is transferred and held, aligning with the strict compliance requirements that institutional investors face. This opens the door for banks, hedge funds, and other regulated entities to participate in Ethena’s ecosystem while adhering to industry standards.
The introduction of iUSDe comes on the heels of Ethena Labs’ strategic funding achievements. In February 2024, Ethena Labs secured $14 million in a strategic funding round at a $300 million valuation. The round was co-led by Dragonfly and Maelstrom, the family office of BitMEX founder Arthur Hayes, highlighting strong investor confidence in Ethena’s long-term vision.
Navigating Security Challenges
Despite recent security incidents in the crypto space, such as the $1.4 billion hack on the Bybit exchange, Ethena has maintained the full collateralization of its USDe stablecoin. The company’s exposure to Bybit was limited to less than $30 million, and it has emphasized the use of off-exchange custody solutions to safeguard assets. This proactive approach to security reflects Ethena’s commitment to protecting its users and investors.
Quick Facts:
- Ethena raised $100 million through a private ENA token sale, with participation from major investors like Franklin Templeton and F-Prime Capital.
- The funds will support the development of a new blockchain and token specifically designed for traditional financial institutions.
- Despite industry-wide security challenges, Ethena’s USDe stablecoin remains fully collateralized, demonstrating robust risk management practices.
