HomeCrypto NewsCoindeskMEXC Ventures Invests $36M in Ethena and USDe as Stablecoin Demand Continues to Surge

MEXC Ventures, the investment arm of crypto exchange MEXC, is investing a total of $36 million into Ethena and its USDe stablecoin, according to a press release.

The firm is making a strategic investment of $16 million in Ethena and bought $20 million in USDe stablecoin to expand the adoption of synthetic dollars in decentralized finance (DeFi) and offer an alternative to fiat-backed stablecoins, the statement said.

The move comes after Ethena, the developer of USDe, raised $100 million last year, which was backed by Franklin Templeton and Fidelity Investments-affiliated F-Prime Capital, among others.

Known as a synthetic stablecoin, USDe is unlike traditional stablecoins like USDT and USDC in that it is not backed 1:1 by fiat assets. Instead, it maintains its peg by collateralizing stablecoins and taking futures positions with large open interest.

USDeโ€™s market cap has risen to nearly $6 billion, while more traditional stablecoins currently have market caps above $50 billion, according to CoinMarketCap data. The total market cap for stablecoins is currently above $200 billion.

MEXCโ€™s backing comes as competition in the stablecoin market intensifies, with projects seeking innovative models to ensure stability and accessibility.

โ€œAs demand for investment in bitcoin and other digital assets continues to rise, stablecoins are set to attract even greater investment,โ€ said Tracy Jin, COO of MEXC.

โ€œMEXC sees Ethena as a key player in the development of diverse stablecoins that will drive the crypto industry forward, supporting broader adoption and providing users with more stable and efficient financial solutions.โ€

Read more: Stablecoin Market Cap Tops $200B as U.S. Sees Industry Helping Maintain Dollar Dominance



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